It’s been a while since I posted a weekly chart of the Euro. Wave c of 2 appears to have completed at 1.5144 in November so, as I’ve written several times, we’re in wave 3. Third waves are fast and strong and I think that’s a fair characterization of the market recently. The pair has been correcting from its low of 1.3586 on Friday to a high of 1.3746 today. There’s room for additional correction but the pair looks weak. I can’t see that it can get above 1.3775 but its vision may be better than mine is. Should it climb above 1.38 – 1.3850, I’d probably lighten my short from 1.4083. I just added another short position at 1.3711.
Support is at 1.3586, 1.3432, 1.3361, and 1.3263. Then there’s the big 1.30, ha-ha, which would be interesting (and profitable). The daily uptrend line from last Oct. 2008is at 1.2841. Resistance is 1.3750/75, 1.3800, and 1.40. Should we see 1.40, I think shorting would be a grand idea.
Here’s the weekly chart:
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