Going long Euro? Test a Triangle.

In a number of my recent posts I have been making some pretty bullish noises about the state of the euro. Most recently this opinion has been based on the bounce off the 200 day moving average and the break from a descending triangle. You will want to keep on top of this triangle because this is the most immediate tipping point for the euro:

You can see the price has broken neatly out of the triangle shown (the base is the 200 day MA) and now looks to be retesting. This is not nearly as good an outcomes as getting a significant price acceleration but it will give those looking to get set in the currency a new starting point. It may also be a good pyramid for those holding on to existing positions.

As it stands there are some good technical arguments that suggest the price may move lower. While we trade above that triangle breakout line though my bias remains bullish. From here the most immediate point of interest will be whether a trough can be formed at this level and if it does then stops can be moved higher.

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