Euro in Position to Test Gann Angle at 1.3544

The EUR USD continued its sell-off on Thursday after turning the main trend down on the daily chart earlier in the week.

The EUR USD continued its sell-off on Thursday after turning the main trend down on the daily chart earlier in the week.

Downside momentum indicates that the break is likely to continue down into an uptrending Gann angle from the 1.2644 bottom at 1.3544 on Friday.

Based on the main range of 1.2587 to 1.4282, the retracement zone at 1.3510 to 1.3434 is also a potential downside target.

The area to watch for a technical bounce is at the support cluster at 1.3544 to 1.3510. This area is being created by the Gann angle and the 50% level.

The main catalyst behind the current weakness is debt issues in Ireland and Spain. Spain is also feeling pressure from the harsh austerity measures which may be the cause behind the lack of growth in third quarter GDP.

On the upside the Euro is walking down a Gann angle at 1.3802. Continue to look for the weakness to continue as long as this market remains under this angle.

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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