EURO Update

E6U7

The Euro continues to be held down by the 38.2% retracement. The 2018 high was 38.2% back to the all-time high, the high on 3/9/20 at 1.1502 was 38.2% back to the 2018 high and that took it to new lows as it should per the 38.2% rule. The rally from that new low once again has stopped at 38.2% (1.1375)  back to the 2018 high and this is now the long term swing point. The last 6 weeks have traded below 38.2% and between the 2 major Gann squares of 1.1370 and 1.1175. The target on a break from 38.2% should be to go for new lows, just as they did in March. As always we will watch all the retracements on any break from 1.1424  and the first key level will be 38.2% of the current rally, this is 1.1133, if this is all they can get down to, it would be a very positive sign. Other areas of support on any break are the 200 day moving average at 1.1055, 61.8% at 1.0950 and 78.6% back at 1.0805. Once they get a couple close's above 1.1375 (38.2%) the long term trend turns positive and the target based on the 38.2% rule will be 61.8% up at 1.1820, this is also a major Gann square.

The horizontal yellow lines are major Gann squares