A week ago, I suggested that the charts of the major European banks could be leading the way for the euro itself. I noted the key reversal in the currency off ECB President Mario Draghi’s policy shift several weeks ago, and said I expected the euro to continue breaking down.
We are now getting very close to a potentially significant chart break — right around 1.35. If that level gives way, I wouldn’t be surprised to see a move down to 1.31 or so, though my ultimate longer-term target is down around 1.27. So keep a close eye on this development …
P.S. Mike’s regular afternoon column will appear later today.
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