Strong Close Puts Euro in Position to Change Trend

With this pair currently trading inside of a retracement zone, thereis no question that the EUR USD is at a critical point on the charts.

Despite the series of lower-tops and lower-bottoms, the EUR USD is closing in a position to challenge the last main top at 1.4177 and turn the main trend back to up.

Depending on the momentum following a break out through this level, this pair may even have enough power to test the high at 1.4337 early next week.

One clue that this market is going to fail will be a close under 1.4042.  It is still possible that this entire rally from the bottom at 1.3748 was merely a retracement of the 1.4337 to 1.3748 range.  This retracement zone is 1.4337 to 1.3748.

With this pair currently trading inside of this resistance zone, there is no question that this market is at a critical point on the charts.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More