The above chart is a two year chart of the euro ETF. Prices have now moved below the 200 day EMA, a year and a half long trend line and recent lows in the 139/139.5 area established over the last 6 months. The recent six month move can be viewed as a sideways rectangle consolidation after a long rally. This is a strong and important technical development.
The above chart is simply a close up of the price action. Gaps are common on this chart, as the ETF is only open for trading during NY hours, but currency markets are 24 hours in length. However, the size of the recent drops is important. Also note the high volume over the last week on the gap lower along with the bearish development in the EMAs -- the 10 day EMA has moved through the 200 day EMA and the 20 is about to do so as well. Both will provide upside resistance should prices snap back.
Ideally, I'd wait for a move higher into one or more of the EMAs before shorting. But this chart is developing into a nice short situation, which is bolstered by the fundamental EU situation.
