The Rydex CurrencyShares Euro (NYSEARCA:FXE) fund has reinstated a bullish consolidation with today’s surge.
On July 11th the pattern looked to be disintegrating as trading slipped through lower support. However, that move is now confirmed as the start of a cruel bear-trap, a deception which shook out weaker longs and inhaled shorts.
With the symmetrical triangle now reignited we expect the primary uptrend to reassert with gusto. Our target for the weeks ahead is $152, derived from the depth of the triangle and also a level which is harmonic with the 2009 high.
Bullish view negated on a drop back through the 200-day exponential moving average, currently rising through $139.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.