RSI moved under 50%, bearish. Price trying to hold that initial warning base line at 142-ish. Note that the buoyancy in price in August is met with an anemic ADX showing that the move up had no strong trend behind it, thus, it collapsed. 141 is a major failure opening the door to far lower prices, 140 and under. A failure of 140 will confirm longer term down side ahead. Also, watch for the 20 MA to cross back under the 50 MA which will verify further downside moving forward. Consider the asset relationship euro down=dollar up=commodities down=equities down. 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.
Note Added 9/6/11 at 6:00 PM EST: Euro is now at the baseline of the descending triangle. Posting the chart was prescient. Any lower will confirm failure of the descending triangle base line and target 131; a juicy gap fill exists at 132. Closing print of 139.95 is one penny above the 200 day MA, thus, the euro is staring over the cliff edge, hanging on by one fingernail. Do not expect an immediate collapse, especially if the indexes rebound since the euro moves with equities, so some hesitancy and buoyancy may be expected in the coming days, but, the die appears cast, lower numbers in store for the euro over the coming weeks. The Thursday morning ECB rate decision and press conference is now mucho importante.
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