The fundamentals are looking slightly better in Europe but there are still a pile of problems that could hit them any moment. Electoral unrest in Germany with increased votes for the right, separatist movement in Spain and others bubbling below the surface and the constant threat of financial problems in Italy and Greece. The Euro has had a good run but maybe now is a good time for a correction.
Technical:
Long Term Chart. It has hit a major resistance area and has bounced back to a previous level.
Daily Chart: Made a series of lower high since early September. Now toying with 50% retrace of move down at Monthly Central pivot. Could be interpreted as an H&S pattern. The Fib target of this retrace would produce a target just above 1.14. A measured move on the H&S pattern gives same target which is a very strong area of previous resistance.
30min Chart:The weekly target zone has been hit. Looking for a little double top or lower high and make an entry on way down.
If this works it is bound to be a rocky ride. We are looking for a trade of 300 pips plus so there is bound to be some significant retracement along the way. Manage accordingly.

Euro Long Term Chart

Euro Daily

Euro 30min with Weekly Pivots

Leave a Reply