ECM10 – June Euro (Last:1.3408)

A mostly bearish Euro chart would turn highly bullish with a rally above 1.3593.  On March 25, the Euro bounced from just above the midpoint of a strong weekly pattern which had been touted the night before.  That remains the low of the downtrend which began at the major high above 1.51 last November.  Since then, a daily pattern emerged whose midpoint was breached yesterday.  If its sibling “D” target of 1.3040 is reached, the “D” target of the weekly pattern at 1.2683 will be in play as well.  But if the Euro rallies above 1.3593, the daily pattern will be cancelled and the chart will feature a double-bottom and a midpoint reversal based on the larger weekly pattern.  This would be a bullish picture overall.  Bears can look for pivots to short, but we think this might be a propitious moment to get long the Euro, using Hidden Pivot methodology including camouflage should it be available.  (Posted by Doug McLagan)  _______ UPDATE (April 12, 01:10 a.m. EST):  The Euro has rallied well above 1.3593 on Sunday night’s Greece bailout news, cancelling the daily pattern with “A” at 1.3819 and “D” at 1.3040, and turning the general picture bullish.  Traders who got long on Friday are doing well.