XEU Euro Daily Chart Descending Triangle Gaps

Euro shows a descending triangle in place with support levels of 142 and 141 extremely important. A break of these levels points to lower targets of 133-135. Note the thin red lines showing how price matched the high from three weeks prior but the indicators were negatively diverged and unenthusiastic about seeing price move up. Also note how price busted up thru the upper rail of the triangle signaling a bull rally but it was a fake out as often happens out of triangles and now price has collapsed back into the safety of the triangle.

Price, the 20 MA and the 50 MA areall the same number verifying the sideways motion of price. Lots of gaps provide downside targets. Also of interest is that the majority of technicians are calling the formation above a bull flag, in other words, this consolidation action for the last four months is simply a pull back and the euro will explode higher from here. Keystone does not see that, the descending triangle appears more logical, at least at this juncture. In addition, the positive move up coming for the dollar will compliment a move down in the euro. Chart continues sideways like the dollar chart continuing sideways but in the days/weeks ahead, 142 should fail, then 141, then you will see the slide down in the euro occur as the dollar index moves upwards. 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 financial advisor before making any investment decision.