Tuesday, January 3, 2012

Charting the EUR/USD

For the longest time (a bit early as I did not suspect the pop to 149 - I was looking as high as 143) I have called down to 135, 125 and finally 116 as my targets for the EUR/USD. You can plainly see the reason for the 116 call in the charts below. What may be wrong with that call is if that level gets hit and busts, the EUR is gone for good as that HnS targets 76.

Monthly - Long term 118 support with larger view of potential Head and Shoulders. Also showing LT support diagonal (pink). The really weak MACD and RSI double top in 10 and 11 signaled this recent move south.

Weekly - Closer look at the HnS and the falling wedge (green) that price is currently in.

Daily - Channeled into 128 support after breaking and backtesting yellow busted rising wedge. If this level goes then you need to look to pink diagonal support near 125 and then 118.

Hope this helps. Sure looks ominous technically for the EUR. That fits nicely with the financial, economic and political developments in the EU zone at this time.

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