Euro Logic

I have been warning that a convincing break of $.13650 could signal another quick two cent decline. I think that given the volatility we are best served taking it one ppiece at a time. So, the first move that we should be looking to retrace is the euro's advance form early Sept near $1.2644 and the high was set on Nov 4 near $1.4280. The 38.2% retracement, that many will use, comes in near $1.3650. The 50% retracement comes in near $1.3460. In the larger scheme of things I would look for the entire move since the euro's low in early June just below $1.19 to be retraced. That could bring the euro down toward $1.27-$1.30. In effect the move since the spring low was a A-B-C correction, to use more of the technical jargon, of the euro's decline from last November's $1.5150 high.
Euro Logic Euro Logic Reviewed by Marc Chandler on November 11, 2010 Rating: 5
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