Euro Begins Week In Solid Uptrend
The Pattern, Price & Time Report | Jan 27, 2013 01:11AM ET
The March Euro futures contract dodged a bullet last week when it failed to follow through to the downside following its potentially bearish closing price reversal top at 1.3413 the week-ending January 18. The subsequent rally on Friday triggered a breakout on the daily chart while re-affirming the uptrend on the weekly chart.
Last week’s rally drove the market further away from the long-term Gann angle at 1.3170. This makes it vulnerable to a sizable correction if upside momentum stalls. This Gann angle is controlling the strength and direction of the market so it should be considered a trend indicator. As long as it stays above this angle, the trend is up.
This week, the first upside target is the February 24, 2012 top at 1.3505. This is followed by a downtrending Gann angle at 1.3520. Breakouts above these two points will be signs of strength, but don’t expect the momentum to be strong enough to reach the other downtrending Gann angle at 1.3850. That would be asking the market to do too much.
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