Euro Runs into Textbook Technical Resistance

After rallying nearly 12% in a little more than a week, the Euro was stopped dead in its tracks Thursday, and has since corrected by more than 5%. While the main explanation for the Euro's two-day decline is that the ECB said it would enact measures to spur more lending between banks, a look at the chart below shows that the currency ran into key resistance right at its 200-day moving average.

While technical analysis is often criticized as a method for 'lazy' traders who don't want to do in-depth research, charts like this show that even if you are a strict fundamental investor, you should always be aware of the major trends other traders are following.

click to enlarge

Comments

[NOWHEREMAN:]

In other words, What?

Whither the direction currently? You put up what's known without drawing a directional conclusion.

If you have nothing to say, why not just post the Pretty Picture without any commentary whatsoever.

IMO

2008 Dec 22 09:56 AM

[NOWHEREMAN:]

Now that I have taken a closer look at it, It could be an H&S bottom with a break above the neckline taking it up to a new all time high of 1.70 or so.

What do you guys think?

2008 Dec 22 06:45 PM