XEU Euro Weekly and Daily Charts

Here is another update for the euro, it runs the whole show. The favorable vote by the German Court has sent the euro over 129 this morning. Interesingly, Europe needs growth moving forward so they actually need the euro weaker to bolster manufacturing and other industries. On the daily chart, price is at the top rail of the upward-sloping channel, now punching up and thru this morning to fill the gap left behind from May.  For this spurt higher, note the indicators all showing negative divergence (red lines) which want to see a spank down in the euro right away.  The pesky MACD line, however, is long and strong and wants to see one more matching or higher high after the pull back occurs. Thus, despite the euro popping this morning, the daily chart hints at a pull back, then move back up to these levels again, then roll over. Watch the 200-day MA at 128.6-ish. Resistance above is 129.00 (now breached, see if it holds), 129.74, 129.90 and 130.80.

The euro weekly chart is in a more bullish pattern. The downward-sloping channel is in play for the last two years.  Price is now testing the top rail of the narrower channel. The price move over the last couple months is a rising wedge. The indicators are all showing a long and strong profile which want to see higher highs after a pull back.  Therefore, perhaps the daily chart creates the spank down needed for the euro to take a rest, then the strength in the weekly chart will reemerge for another move up to current levels in the weeks ahead, then roll over on the weekly basis.  The weekly chart may want to move sideways thru the pink channel at 120-132 for the considerable future.

Projection is a continued topping and rolling over for the euro from these levels in the days ahead, perhaps a move back down to 126-127, which would have to be in concert with the equities markets selling off since the euro and markets move in the same direction, then back up to these levels again in the weeks ahead, then roll over into the intermediate term since Europe will have to move to a weaker euro thru ECB rate cuts. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 9/12/12 at 7:09 AM:  Current euro print is 1.2922.