The Euro – look out below ?

euro gartleyThe embedded chart in this post shows a monthly nearest chart of the Euro. This morning noted writer Dennis Gartman in the USA called for the Euro to move lower after PMI data disappointed and European indices puked off hard. So, is Mr. Gartman right in his assessment? Yes indeed he is !

I have overlaid a classic 222 parallelogram a la Harold Gartley on this chart. Look at where the bottom apex is at on this parallelogram. We have several months in time that have yet to pass before we are in alignment with this apex. We may not necessarily get to the 1.10 level projected by this apex, but at the time we intersect the apex, the Euro should be lower. Do some mathematics based on the golden mean of 0.618 and you can predict some likely downside targets for the Euro.

This all has me worried. A weaker Euro implies a stronger US Dollar which by exitension implies pressure to the downside for commodities. I shall be watching this all very carefully as time elapses……

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