The euro posted an outside down day on Wed (engulfing pattern in Japanese candlesticks) and there has been follow through today. The last important low for the euro was on July 12 near $1.3833. The trend line off that low comes in near $1.4355 today and has been clearly violated. It is also below the 20-day moving average which is found near $1.4285. The next important levels to keep in mind are the $1.4269 area, which has been taken out intra-day and represents a 38.2% retracement of the euro's bounce from July 12. The 50% retracement is found near $1.4187 and the $1.4140 area is the low recorded before the market's reaction to the draft EU statement on July 21.
No comments:
Post a Comment