Wednesday, June 23, 2010

A Closer Look At the Euro

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While prices have broken key resistance (a), we're not out of the woods yet. While the 10 and 20 day EMAs are moving sideways, the 10 is still below the 20 (b). In addition, the 50 is still moving lower. On the positive side, prices are using the shorter EMAs (the 10 and 20) for technical support. The MACD has given a buy signal and is moving higher (c), but we're not seeing a meaningful increase in flows into the market yet (d and e). That is my big concern right now.