Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-It is possible that an ending diagonal is underway from the November low. If that plays out, then the market will trade above 1.3966 (and most likely above 1.4000) before topping. As is the case with all USD crosses, a larger breakdown (USD) isn’t out of the question at this point and I’m not keen on fighting USD weakness until Friday at the earliest. Even then, there would have to be evidence of a top (in this case…a push above 1.4000 and strong reversal).
-1.3905 is support…look higher near term as long as price is above 1.3860.
LEVELS: 1.3864 1.38821.3905 | 1.3927 1.3966 1.4020
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