Euro Slightly Better but Reversal Top Still a Threat to Rally

The Euro is trading slightly better thismorning. Some traders attribute the strength to Ireland’s denial that it will needoutside financial aid.

The Euro is trading slightly better this morning. Sometraders attribute the strength to Ireland’s denial that it will needoutside financial aid. The fact that the market is trading inside last Friday’srange could be an indication that investors remain skeptical about Ireland’sfinancial condition.

Technically, a trade through 1.3159 will reaffirm theuptrend and negate last Friday’s closing price reversal top. A trade through1.3019 will confirm the reversal top and could be setting up a 2 to 3 day breakto 1.2901.

The AUD USD could not confirm last Friday’s reversal top andthe pattern was negated by the overnight rally. There was very little follow-through on the rally which means tradersare cautious about buying at current levels. If U.S. stocks turn lower, then lookfor the start of another reversal top pattern.

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

Disclainer: