Since July 24th the euro has been rising against the US dollar. This in the face of continued concerns about the situation in Spain and Greece, but propped by the dysfunctional environment in Washington. But after that run higher it currently sits at a very interesting level from a technical perspective, meaning a tradeable event. From the chart below the euro has been building a potential Inverse Head and Shoulders pattern, with a break of the Neckline in black as the trigger. A move over that trigger creates a price objective of at least 1.3536. Your first tradeable event. But a failure is also interesting. 
The Fibonacci Fan Lines show that the tops of that down trending resistance line have occurred at key Fibonacci Speed levels. The October 17th top at the 61.8% and the December 4th top at the 38.2% Fan Lines. Each top has been preceded by a lower low. A failure at the Neckline could be played for another in the series. The fact that the latest touch at resistance comes from a higher low gives weigh to the case for a break out higher. But only price pays. See the reaction and then trade.
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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A Quick And Bullish Technical Look At The Euro
Published 12/16/2012, 01:23 AM
Updated 05/14/2017, 06:45 AM
A Quick And Bullish Technical Look At The Euro
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
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