European recovery

Both the Euro and Dow Jones Euro Stoxx 50 Index are bullish.

Euro recovery above $1.37, the high of February 2013, suggests another advance. Breakout above $1.38 would confirm. Breach of the (secondary) rising trendline and declining Twiggs Momentum, however, warn of a weak trend. Reversal below $1.35 would test primary support at $1.33.

Euro

* Target calculation: 1.38 + ( 1.38 – 1.33 ) = 1.43

Dow Jones Euro Stoxx 50 is stronger, recovering above 3100 to indicate an advance to 3350*. Follow-through above 3180 would confirm. 13-Week Twiggs Momentum oscillating above zero reflects a healthy up-trend. Breach of the secondary trendline is unlikely, but would warn of another test of primary support at 2920.

Dow Jones Euro Stoxx 50

* Target calculation: 3150 + ( 3150 – 2950 ) = 3350