Euro Continues to Rise after Breaking Retracement Zone

The Euro continues to post strong gains this morning afterbreaking through a minor retracement zone at 1.2164 to 1.2233 overnight. Themain trend is down until 1.2453 is penetrated, but the daily chart indicatesthere is plenty of room to the upside.

The Euro continues to post strong gains this morning afterbreaking through a minor retracement zone at 1.2164 to 1.2233 overnight. Themain trend is down until 1.2453 is penetrated, but the daily chart indicatesthere is plenty of room to the upside.

Last week’s closing price reversal bottom at 1.1876 is thedriving force behind today’s rally. Overnight this reversal bottom wasconfirmed when the market took out last week’s high at 1.2152.

This type of reversal pattern usually means a minimum 2 to 3week really or a 50% retracement of the last leg down. Based on this pattern,look for a possible rally to 1.2784.

The strong rally in the GBP USD helped turn the main trendup on the daily chart. After crossing the old top at 1.4769, the next minimumupside target is a 50% level at 1.4810. This is followed by the .618 pricetarget of 1.4947.

Stronger demand for higher risk assets is also driving theAustralian Dollar higher. This morning’s breakout over the last swing top at.8550 and a downtrending Gann angle is triggering a strong surge to the upside.Upside momentum indicates that the next upside target is a major 50%retracement area at .8727.

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

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