by Greg Harmon
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?
No comments:
Post a Comment