The euro seems to have taken a back seat the last couple of weeks. First the BOJ manipulated their currency leading to a soaring stock market, then market focus shifted recently towards whether the Fed will or will not be exiting QE Infinity anytime soon, which has taken center stage.
The poor euro does not seem to like the lack of attention--it is setting up for a suicide dive technically. A quick look at the weekly price action of the Currency Shares Euro Trust, (FXE), shows 2 bearish scenarios setting up. The first is a Head and Shoulders pattern. A break of the neckline at 126.90 triggers a price objective of at least 117.25:
Currency Shares Euro Trust, (FXE)
That level has not been seen since December 2005. Now that should get some attention! It has support for a continued run lower from a falling Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is falling. The second scenario comes from the Andrew’s Pitchfork set-up. It shows a continuing move towards the Median Line and if that previously mentioned Head and Shoulders triggers, that should attract it lower. So keep an eye on the euro for a few days.
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Don’t Forget The Euro
Published 05/23/2013, 12:35 AM
Updated 05/14/2017, 06:45 AM
Don’t Forget The Euro
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