The Euro has been very strong lately. As shown, it is in a zone that has not been highly favored for the past couple of weeks. I believe that 3 things could happen here. 1. The pair quickly drops out of the red zone shown on the Fibonacci. 2. The pair runs up and tests the 1.15 line, then, with divergence on the MACD, the pair will drop over 150 pips. 3. The pair becomes comfortable with the 1.148-1.15 zone and breaks the 1.15 line to keep pushing upwards. My bets are placed on the short. "Trends often end in a spike up or spike down."(Linda Bradford Raschke) With the USD looking strong, and the EUR cooling down, strong resistance, a turning in the MACD, the pair should drop. ALSO, be looking for the ANN Strategy to say short, once it does, the pair will drop hard.
Comment:
Look at the 1 hour chart. there is a very noticeable spike at the 1.16 level. That is the indication of a trend reversal. Be hoping to gain 300 pips on a short position
