Euro November High Now Support at 14280
Prepared by Jamie Saettele, CMT
If you have yet to do so, view Friday’s video (link below) for detailed analysis on the implications of the historic EURUSD decline on Thursday and Friday. The indicator plotted above is the disparity index – a measure of the distance between the closing price and the 200 day moving average on a percentage basis. Major tops since 2008 have occurred just above 9% (price exceeding its 200 day MA by 9%). Like all momentum indicators, the disparity index tends to display divergence at its final top. Without divergence present, I am wary of calling this the final top. What’s more, the 100% extension at 15279 intersects with channel resistance in mid June. The November 2010 top at 14280 is support but 14150 is a near term objective. This level is defined by the 4/18 low and 100% extension of the 14940-14509 decline (double zigzag measurement). In summary, look lower until mid week towards 14150.
Support/Resistance Index (M,W,D) – 0, (3), (4)
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market. Send requests to receive his reports via email to email@example.com.
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