Interactive Investor

A signal of hope for the beleaguered euro?

The situation for the euro/dollar pairing now appears fairly straightforward, thinks this top chartist.

12th September 2019 11:15

Alistair Strang from Trends and Targets

The situation for the euro/dollar pairing now appears fairly straightforward, thinks this top chartist.

Given events in the 'Scottish Law v English Law, Boris v Parliament and UK v Europe' shambles, it is probably safer to look outside the UK for signs of sanity.

We'd glanced at the euro/US dollar pairing in March, projecting traffic down to 1.10 with this level successfully achieved. The drop exceeded our initial target on the first downward surge, generally bad news.

What does this mean?

Source: Trends and Targets      Past performance is not a guide to future performance

The chart above shows movement for this pairing during the day on August 30th. The point at which our target 1.10 was achieved saw the pairing fall to 1.096, thus breaking the target and implying further weakness is possible.

In the period since, the pair has bounced rather unconvincingly above and below our 1.10, thus tending to confirm it was indeed a valid target, along with signalling trouble ahead. The situation now appears fairly straightforward.

Below 1.092 should trigger further reversal to an initial 1.0635. If broken on the initial surge, our secondary is at 1.0494 and we now expect the pair to enact a bounce at such a level, if only to confirm the long term red uptrend (from 2002!) has been broken. Effectively, this gives the hope of a bounce from 1.0494 up to 1.09 or so.

At present, to escape this quagmire, the relationship needs strengthen above 1.1240 but visually, there's nothing significant which gives hope.

In summary, we're all doomed…As usual.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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