Wednesday, November 30, 2005
Here is an hourly chart showing pit and electronic trading in the December eurocurrency
I've been expecting a rally in the eurocurrency into the 122-123 range for several weeks now.
The market has been trying to rally since November 15, but without much success. Support levels eventually get stale and I think this is happening with the 117.00 level I have been watching.
You can see that the latest rally attempt was a very fast move up of 240 points but the new high was immediately rejected by the market and was followed by an equally steep sell-off. Now the market is trading below the top of its current box. My best guess now is that the eurocurrency is headed for 115.50 before it will try to rally again.