The block to further progress in chart terms has been the diagonal of a complex Head and Shoulders Top (or, indeed, the completion level of a Triple / Quadruple?) Top.

Note well the abrupt fall back from the close approach to that diagonal….

Now look closer.

DAILY CHART

Those critical levels are shown to much greater effect on this day chart.

This is the completion level resistance of the multiple Top.

This is the neckline of the complex Head and Shoulders Top.

Note well the minimum move implied by the Head and Shoulders Top - around 115.50.

DAILY CHART

A good measure of the force of the rejection of the 127 level has been the speed and unhesitating penetration of the support from the Prior Highs (in fact, the old neckline of a bull Euro Head and Shoulders Reversal) at 125.20/24.

The break of that support emphasizes the true weakness of the Euro.

We expect a test of the recent lows at 119.50 soon.

And on a break moves further still towards the 115.50 level…..

Mark Sturdy
John Lewis

Seven Days Ahead
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