Euro Currency Futures Technical Analysis

The Euro currency futures are moving lower this morning to
the lowest point since 2008.  The Euro is
highly correlated to the dollar index so we can keep that in mind today as we take
our first few trades on the euro.  We can
see the trend liens coming from overhead to provide resistance, the trend lines
as support below us, and this creates a bearish price wedge.  We can see price is trading INSIDE the range
from yesterday, so the PLOD is support and the PHOD is resistance.

 

The 144range chart on the euro shows us 2
distinct bullish AB=CD Patterns.  We can
see the obviously-bearish long term trend with a bear price channel to show for
it.  We can see the narrow range from Tuesday
from 2345 down to 2246 and we are trading INSIDE that range.  Our plan today is to use the most important price
structure, which we believe to be the bear price channel and bear price wedge.  So when price makes new lower-lows we first
look for the fake-out breakout and then we use a wave-pattern to enter short
below the PLOD and below the trend line support.  We have a price channel support just below
the PLOD so we will take profit at the price channel lows, and then final
target all the way at the lows of the price channel around 1.2000.