Thursday, April 5, 2012
Stocks Toppish; Euro to Decline Further
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Unlike stocks, the euro did follow my head and shoulders topping pattern I laid out in last post and has been on an assault to the downside since. The daily chart shows that the 1.3000 level is a good support level for the moment, and it currently sits near that level at the time of writing. Judging by the pattern I see before me, 1.3000 will be taken out farely soon. There may be a relief pop to the upside to alleviate some of the oversold condition it has on the intraday charts. But that pop should be short lived and the downside movement should resume to well below 1.3000. I'm firmly bearish the euro, and bullish the US dollar.
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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.