Prepare for The Euro Breakout

• Posted by Greg Harmon
• on March 5th, 2014

The Euro has been struggling in a range for some time. From the daily chart below of the Currency Shares Euro Trust, $FXE, the price action has been consolidating in a ‘W’ like pattern, making an Ascending Triangle. This pattern targets a move equal to the biggest part of the triangle on a breakout. In this particular case a $5 move. And with the price holding near the top of the triangle that would target a move to 141.60 on a break higher. The other indicators, RSI and MACD

support this. But what is interesting about this chart is that it did break out, for just a minute, early on Monday, only to be dropped later. Is this a sign that orders were in to buy from Friday that pushed it higher? If the Ukraine situation settles does this mean a break could happen Wednesday? Or by the rate decision later in the Week? It seems primed. But

141.60 may not be the end of it then. A check of the weekly chart shows that the short term break would also trigger a longer term Cup and Handle that targets a move to 152.50. Does that make it more intriguing?

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