Banksters and others with a stake in the euro shouldn’t get their hopes too high, since the long-term charts point unambiguously to a target just below 82 cents (see inset). There will be rallies, of course, since sellers are piling onto this no-brainer trade in such preponderance that there will occasionally be no one left to sell. That would appear to have been the case until very recently, two months into a dead-cat bounce that actually tripped a ‘mechanical’ short-sale signal when it hit the green line two weeks ago. A stop-loss at 1.17121 would ordinarily be required for this type of entry, but I’d recommend lowering to 1.12990, since a print at that price would turn the weekly chart bullishly impulsive. There will also be an enticing play at the red line, a midpoint Hidden Pivot support where the odds will favor a precisely tradable bounce. I’ll keep an open mind if I see uptrending abc patterns of minor degree start to exceed their ‘d’ targets. In the meantime, with Marine LePen looking like a shoe-on to become France’s next president, it is probably safe to treat any rally in the euro, especially a protracted one, as an opportunity to get short. If you don’t subscribe, click here for two weeks’ free access to Rick’s Picks, including daily, actionable ‘touts’, round-the-clock updates, impromptu tech analysis sessions online, and a chat room that draws experienced traders from around the world at all hours of the day and night.
This post was published at GoldSeek on 14 February 2017.
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