The Run is Done

We think the bull-run in the Euro that started back in August is over. Previously we were looking for a move just beyond the September high to climax that move, and while that is still a possibility we can’t risk missing a resumption of the primary pattern lower. The markets have not been paying much attention to day to day fundamentals, so we don’t see anything on the economic front that could put off a turnaround for this pair. Likewise if we do see an October correction for stocks and commodities, i.e.: sharp sell offs in the S&P 500 and gold, it would weigh heavily on the Euro. Call it temporary Dollar strength or just a needed correction, but either way it would spell downside for the Euro.

Figure 1. Daily EURUSD Chart

Jay Norris teaches at Trading-U.com

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