Thursday, December 8, 2011

FXE/Euro Update

Today seemingly was a decisive event for the Euro.

 Small consolidation/continuation triangle in FXE/Euro ETF. Since it is a symmetrical triangle, it doesn't carry a bias by itself unlike some other triangles, but depends on the preceding trend to give it a bias, which was down, which makes it a bearish continuation triangle which has resolved to the downside today.

 Here's a closer look, this is important because equities have a high correlation to the Euro, moving in unison to a large degree.

 Here's short term 3C on yesterday's rumor pop, like the averages, it was a negative divergence.

The 5 min was as well and is in line with price now or confirming the downtrend in the Euro.

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