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Nearby Euro Finishing Month Strong

ByThe Pattern, Price & Time Report
AuthorJames Hyerczyk
Published 03/28/2012, 06:06 AM
Updated 05/14/2017, 06:45 AM

With the end of March coming up this week, it’s time to revisit the Nearby Euro Monthly chart. If you recall, in January the euro posted a low at 1.2637 while forming a closing price reversal bottom.

This type of bottom usually leads to a 2 to 3 month rally equal to at least 50 percent of the last break. From a timing perspective this means a rally into March or April. Based on the break from 1.4908 to 1.2637, the first retracement target is 1.3773.

In February, the euro confirmed the closing price reversal bottom but found resistance on a downtrending Gann angle near 1.3498. This month the same angle is at 1.3308. In April, this angle drops down to 1.3148.
Monthly-June-Euro-Chart
After finding support at the short-term retracement zone at 1.3068 to 1.2966 earlier this month, the Euro has surged to temporarily regain a steep uptrending Gann angle at 1.3277. Next month this angle moves up to 1.3597. In order to continue this torrid pace, the market is going to have to continue to accelerate at .0240 per month just to reach this angle in April.

Since the uptrending and downtrending Gann angles cross this month at 1.3277 and 1.3308 respectively, traders have to consider this to be a resistance cluster. Therefore, Tuesday’s early breakout through this cluster could be a sign that the euro is going to finish the month strong.

Besides regaining the Gann angles, it would be nice if the euro took out last month’s high at 1.3498. This move would make 1.2637 a new swing bottom and may give the market more upside momentum. This would help greatly the euro quest to reach the 50 percent price objective at 1.3773.

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