Triple break of Eur

About 10 days ago, I posted a message of Eur forming a 3 crows candlestick pattern. I have been shorting Eur a couple of days before that. I kept adding more Eur short last week when I saw the triple break of this troublesome currency.

In the chart, we can see that Eur broke three very important technical indicators. It not only broke down the 50 day MA, it also broke the upward trend line formed since early July, and more importantly it broke down the head and shoulder pattern. Three crows plus a triple break is all I need. I am expecting a TNT magnitude of downward momentum. Those hungry hedge funds have pull the trigger and the slaughter just have begun.

S&P and Eur

I have been watching the correlation between S&P and Eur for a long time. And I believe it is worthwhile to point out this relationship to my readers. Since March 2010 S&P and Eur were traded in a very high correlation pattern, with Eur leading S&P for at least several days. I highlighted the leading of Eur in red box and the green-blue dotted line. Obviously the trend development of Eur needs to be watched closely enough for traders who want to get ahead of others in trading US equities.

Both Eur and S&P closed below the head and shoulder neck line last week. The signal is crystal clear, short the market is the right way to go.