Friday, December 23, 2011

3rd Time is a Charm?

As described and predicted yesterday in this post... We saw overnight the 3rd triangle/head-fake breakout-failure of the Euro, that's 3 days consecutively now and at each break out the longs think the Euro is going to stabilize and it gives the long $1.30 a crowd demand to sell in to, which was the premise behind this entire Euro bounce idea a few days before it even started.

Here was yesterday's chart in FXE (because the trendlines are cleaner)
 And here's what I said in the post linked above from yesterday: "This is the 3rd in 2 days, the last 2 have been false breakouts, I think this one will do the same,"




Here's the EUR/USD presently, the triangle from yesterday at the left, the break out in green and the failure at the right. Just like yesterday's late day volatility, it looks like every point of strength is being used to sell in to.

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