Friday, 23 March 2012

Euro H/S, new wave lower due

The Euro is looking like its ready to break lower.

Euro, daily cycle

Momentum indicators are still pointing upward, but we do arguably have a pretty clear H/S formation. A move above 1.34 would likely mean we continue upward. We'll know soon enough.

Euro- weekly cycle...VERY bearish across the mid term

A move to test/break 1.20 looks very possible later this summer. Of course, that would mean the $ is up, which would mean downward pressure on equities (and especially the metals!). Hmmm.

Conversely, a move above the bigger channel line of 1.35 would suggest a real chance - no matter how insane it seems, to around 1.40/1.45 later in the summer. That would support the notion of Sp'1550 - as many have been touting lately.

So, keep an eye on the Euro in the coming days, it could offer a real clue as to where this crazy market is headed.