The September euro futures contract went on a wild ride on Thursday, first buoyed by speculation that the European Central Bank would begin some form of quantitative easing and then crushed when ECB President Mario Draghi failed to give speculators what they wanted.
The euro surged to the upside on Friday, taking out the previous top at 1.2389, but slamming into a 50% retracement level that stopped the rally cold. The subsequent turnaround in the market took out the previous bottom at 1.2336, turning the main trend to down. After taking out this bottom and another 50% price level at 1.2215, the market broke through a Fibonacci price level at 1.2175 and an uptrending Gann angle at 1.2182.
The euro was able to mount a slight recovery late in the Thursday session to finish off its low, setting up Friday morning’s slight bias to the upside.
Technically, the new main range on the daily chart Friday was 1.2051 to 1.2413 with a retracement zone at 1.2232 to 1.2189. Overnight Thursday, the euro straddled both sides of the retracement zone, indicating trader indecision. Additional support comes in at 1.2211 and 1.2131.
The euro surged to the upside on Friday, taking out the previous top at 1.2389, but slamming into a 50% retracement level that stopped the rally cold. The subsequent turnaround in the market took out the previous bottom at 1.2336, turning the main trend to down. After taking out this bottom and another 50% price level at 1.2215, the market broke through a Fibonacci price level at 1.2175 and an uptrending Gann angle at 1.2182.
The euro was able to mount a slight recovery late in the Thursday session to finish off its low, setting up Friday morning’s slight bias to the upside.
Technically, the new main range on the daily chart Friday was 1.2051 to 1.2413 with a retracement zone at 1.2232 to 1.2189. Overnight Thursday, the euro straddled both sides of the retracement zone, indicating trader indecision. Additional support comes in at 1.2211 and 1.2131.