Euro Spikes on Durable Goods Data

News that Durable Goods rose smaller than expected helpedtrigger an intraday spike in the Euro. U.S. equities broke on the newswhile Treasury yields fell.

News that Durable Goods rose smaller than expected helpedtrigger an intraday spike in the Euro. U.S. equities broke on the newswhile Treasury yields fell.

Technically the Euro found support at a major 50% pricelevel at 1.2605. The market needs to hold this level and begin to build asupport base in order to feed on Tuesday’s bullish close.

Yesterday’s closing price reversal bottom pattern has thepotential to generate a 2 to 3 day retracement to 1.2754 to 1.2793. A downtrendingGann angle at 1.2814 is also a potential target. The potential rally is notdesigned to change the trend but force weaker traders to cover shorts. The maintrend will turn to up if 1.2921 is violated.