XEU Euro Overbot Negative Divergence

Euro bounced off the blue falling wedge, oversold conditions and positive divergence (blue lines). But, all parties come to an end and this one does not appear to have legs. The red lines show negative divergence that wants to see a price smack down. Note the candle today is a doji. Look for confirmation of a trend change tomorrow, which would be down. The 20 MA and 50 MA confluence at 130.50-131.00 serves as a quickie downside target.

The MACD green line, however, wants to see another matching or higher high in price after a sell off which results in the projection shown in the margin (black line). Euro should receive a spank down from the negative divergence, perhaps in concert with the ECB rate decision Thursday morning east coast U.S. time. Down euro=up dollar=down commodities=down equities. 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.