The Euro retraced from resistance at $1.39 but appears unlikely to penetrate the rising trendline (having recently signaled a primary advance). Breach would warn of of trend weakness, but recovery above $1.39 is more likely and would signal an advance to $1.46*.
* Target calculation: 1.37 + ( 1.37 – 1.28 ) = 1.46
The dragonfly candlestick on Germany’s DAX indicates strong support at 9000. Recovery above 9400 would suggest the correction is over and breakout above 9800 would signal a fresh advance with a target of 10600*. Reversal below 9000 is unlikely, but would warn of a correction to the primary trendline. Completion of another 13-week Twiggs Money Flow trough high above zero would signal strong long-term buying pressure.
* Target calculation: 9800 + ( 9800 – 9000 ) = 10600
Retreat of DAX Volatility below 20 suggests low risk indicative of a bull market.
