Don't Ignore This Chart!

Euro ETF Forms Massive Consolidation within Downtrend

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The Euro ETF (FXE) formed a large triangle after a sharp decline and this pattern could be just a big rest within a bigger downtrend. After falling some 25% in one year, FXE found support in March 2015 and moved sideways the last 20 months. This sideways pattern looks like a massive triangle consolidation that could be considered a continuation pattern. This means it represents a rest after the big decline. A break below triangle support would resolve this pattern and signal a continuation of the bigger decline. Within the pattern, the Euro broke upswing support with a sharp decline in May-June and is nearing a big test of support. The indicator window shows the US Dollar ETF (UUP) challenging the upper trend line of a falling channel. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , 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. Learn More
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