THE CURRENT PATTERN IN THE EURO LEAVES IT WITH ONLY ONE PATH TO TAKE IN THE NEAR FUTURE
When I looked at the chart of the Euro over the weekend, I had an instant reaction that I had seen this pattern somewhere else in 2011. Being that I have a library of my thoughts available to me through this website, I began looking over the charts I had posted this year. Then the memory became more clear. I knew it was a pattern in the QQQ.
After a few minutes of looking through QQQ charts, I found the chart I posted way back on April 12th. The link to that chart is here http://www.zenpenny.com/wp-content/uploads/2011/04/QQQ-4-12-11.gif
Here is a shot of the chart zoomed in from that time without my notes:
click chart to enlarge
Here is a current chart of the Euro:
These are the exact same patterns. Of course, the Euro's pattern is in reverse. However, equally as powerful.
The series of small declines in the QQQ during an uptrend eventually led to a powerful explosion higher as the shorts couldn't sink the ship despite piling in thinking the market would collapse.
Now with the Euro we have a series of higher lows that looks very organized and calm in its approach. It is more or less going nowhere, however, given where we have come from.
Guess how this ends? With the Euro plunging from here in the coming weeks just as the QQQ exploded higher in April.
This is a powerful pattern that is highly reliable. A breakdown from here is an inevitable conclusion for the Euro.
