After consolidating for four weeks, the Euro ETF (FXE) is making a bid to continue its downtrend with a break below consolidation support. The bottom chart shows FXE forming a triangle after an extended decline. This is a consolidation within a downtrend and it represents a rest within that trend. Today's break signals a continuation of the long-term downtrend. The top chart shows the US Dollar ETF (UUP) making a bid to break triangle resistance and continue its uptrend.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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