ULE Euro Ultra Bull ETF Weekly Chart Falling Wedge Oversold Positive Divergence

The weekly chart for the euro (XEU, FXE and ULE charts all represent the euro) shows a falling wedge, oversold stochastics and positive divergence (blue lines). Price is now testing the levels from one year ago. Note that after a bounce the overall downard sloping action for the euro should continue into 2012. Projection is for a bounce to occur over the near term but weakness will renenter and the euro will drift lower in 2012.

Also of interest is the textbook C&H (cup and handle) pattern in 2010. The 21 bottom and 25.5 breakout level targets 30-ish which was achieved intraweek early November. Astute traders would have entered in September to ride the pattern 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.