Euro Consolidation

As far as I can tell, the most pivotal event in the markets right now is the Euro/Dollar relationship which has a significant impact on nearly every risk asset. The market is pretty much hung up in a consolidation or a pause and if you look at the EUR/USD it is as well, it seems obvious that the two are very interconnected right now, both with very high short interest. The short term or intraday Euro charts are hung up in intraday negative divergences that have thus far led to a consolidation, they are probably large enough to create a pullback (the market should follow the Euro roughly) as the Euro is confronting some resistance, the $USD charts confirm, but when in doubt, look at the longer term charts so here they are.

 The Euro since 4 p.m.  (NY) yesterday

 The EUR/USD since the 9:30 open today, note the consolidation

 Euro intraday 3 min is in or was in overall leading positive position, 3C has pulled back pretty deep, I suspect a pullback in the Euro as well.

 The divergence is on the 5 min chart as well.

 When we get to the 15 min chart there's no divergence and 3C is leading positive, the divergence above is an excellent example of a relative positive divergence.

 The longer term 15 min chart since the May 1 negative divergence/top with the 15 min currently in leading positive position, much of that from this week.

 The longer term trend of the 30 min chart has been in a very positive position and this is a large divergence, suggesting  large move.

 Until recently the 30 min divergence was impressive, but that is as far as it went, now it has made it to the 60 min chart as a leading positive-even more impressive.

 The 2 min $USD intraday has seen a positive divergence that has thus far halted the slide and created a consolidation, I suspect it will send the $USD higher in the near term and Euro lower and the market lower with it.

 However at the $USD 5 min chart there's no positive at all, so I don't view it as much more than a correctional divergence as the Euro is at resistance.

The $USD 15 min chart is confirming the Euro 15 min in that it is leading negative, the opposite of the Euro 15 min.

 The $USD 30 min negative also confirms the Euro 30 min positive.

And the 60 min negative $USD confirms the 60 min Euro positive.

However in the near term, I'd expect some pullback in both the Euro and the market.