XEU Euro Index Daily Chart Two Leg Bull Flag Negative Divergence Gap Fills

XEU Euro index came up to fill that small gap and finish all business above. Price negatively diverged now and ready to head down, but, the two-leg bull flag pattern targeted 143. Thus, top would be expected now, 142.4, thru 143.0, and then the negative divergence and rising wedges should bring her down any day.

This means that Trichet news will be silent over the next day or so (euro price stays buoyant), but then he should balk on the rate hike causing the euro to head lower. The other outcome would be that Trichet produces the hike as promised but the euro does not advance far, or only finishes out the bull flag at 143-ish, since it is built into the euro price already, and moves sideways to sideways down despite the rate hike. The gaps below at 141.5 and 140.0 serve as intial targets. Euro down=dollar index up=commodities down=equities down. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.