Trade of the 1st quarter…
There are a couple of markets that
are moving into the new year with the potential to offer some exciting
opportunities. The Euro FX, which is traded on the CME, is one of
those. Looking at the chart I have posted below, the Euro appears to be ending a
very healthy one year correction, which has ended a 5 wave move down, and
created bullish divergence right at the 116 area, which also happens to be a
.382 retracement from the low of 83.42 in July of 2001 to the high of 136.80 in
December of 04. If this is the low, and the trend reverses, I am looking for a
pop up to 128.00 as a minimal point of retest for this currency, even if the
longer term up trend in it has reversed.
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