Friday, January 07, 2011

Euro - Bearish Technical Pattern


If you read my comments yesterday regarding the Euro, you would know that I was bearish based on relative weakness compared to the Swiss Franc.  There is one more reason to be bearish on this currency which I forgot to mention  in yesterday's post.

If you look at the above chart, you will notice a very large head and shoulders top that has developed over the past 5 months. The neckline has clearly been broken which confirms the pattern. 

The Euro was down again today establishing a fresh 31/2 month low.




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