Has The EURO Topped?

August 31, 2017

At least in the short term anyway? Remember, that based on my USD update from yesterday, I am still looking for a 5-6 month Intermediate Cycle Low (ICL) in the USD.  The Dollar has rallied hard off yesterday’s low and as you would expect, the EURO is showing signs of topping here.

I have taken a trade in shorting the EURO with the EUO ETF but have not yet made this a portfolio trade as it is risky here but here are some charts on both the EURO ($XEU) and EUO.

My first three charts are on the EURO ($XEU). The first is close up showing what looks like an early top on day 8.  The second is a one year daily and the third, an 11 Year weekly showing that it is struggling at the 200wma. My last chart is a USD 1+ year weekly showing the strong two day bounce that recaptured the 200wma so we may well be witnessing the long awaited Intermediate Low (ICL) I have been looking for.

 

 

My last two charts are on the EUO ETF that shorts the EURO.

Talk about catching a falling knife… Wish me luck.

 

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Surf City is a pseudonym for a 60-year-old retired Information Technology Executive and Software start-up Entrepreneur living near the beach in California.   He has been an active investor and trader since the mid-1980s. Analytical by nature, his sound investments over the years allowed him to retire at a relatively early age of 55. In addition to the standard Technical Analysis tools of Edwards and Magee, Surf is a disciple of Walter Bressert’s Cycle Methodology and Stan Weinstein’s Stage 4 Market analysis.  Surf combines these skills to develop his unique “Cycle Price Channels.”  Some call them “Surf’s ForkCycles.

In the Aztec language the name for gold is teocuitlatl which means "excrement of the gods."