XEU Euro Weekly Chart Two Leg Bull Flag Patterns

Remarkable run for the euro, the strength coming from Trichet's hawkish talk. Many times you will see a two-leg bull flag inside a larger two-leg bull flag. The blue pattern moved from 120 to 133, 13 difference, then after the sideways consolidation, started up again at 127, thus 127+13=140 target. Once 140 was achieved, price went into another sideways to sideways down consolidation, and started up again from 128. For the red flag, 120 to 140 is 20 diffference, thus 128+20=148 target, now achieved.

This 148-150 should serve as a top for now. Considering the desire of the RSI to see another matching high, price should pull back, then head back up to these current levels again. ADX shows that the trend was stronger when the euro was selling off during 2010 then the up move now. The purple lines show negative divergence and want to see price fall. This chart will react to Trichet's press conference talk on Thursday morning. The long rally appears to be topping now and if the dollar bounces as the charts show, that would be in concert with the euro falling. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.