Now that Portugal has been removed from the respirator, Europe’s ‘recovery’ is ostensibly complete — even if there are still no jobs to be had in all of Iberia for college grads. Regardless, the euro has a bit of rally room in the days ahead, since an unfulfilled Hidden Pivot target at 1.4018 beckons just above (see inset). Although there would appear to be almost zero chance the June contract won’t get there, getting past it is by no means a done deal. In fact, price action centered on the midpoint pivot (i.e., the red line) over the last four months has been sufficiently precise that we should expect the pivot’s 1.4018 ‘sibling’ to be precisely shortable. That said, an easy move through it would imply there is still some buyer power left to drive this vehicle even higher. But it would take no less than a print at 1.4241 (see inset) to suggest that the aging uptrend from mid-2012’s low has been more than a mere a bear rally.
