The 2012 high in the March Euro futures of 1.3325 happens to be the exact midpoint of a prominent pattern, and a move above that level will project up to the “D” target of 1.3672. In the early hours of Tuesday the futures have confirmed and then broken a smaller pattern whose impulse wave took out an important external prior high. Traders should watch for a new “C” point to be confirmed and then calculate the pivot levels and assess the implications. If the euro continues to decline, however, and especially if it makes new session lows, it will begin to look as if Monday evening’s strong move up was perhaps a last shot at the key 1.3325 level. (Posted by Doug “harry” McLagan)
