Euro.(FINANCIAL MARKETS)

The monthly continuation chart for nearby euro futures shows a longer-term uptrend line drawn off the February 2002 low of 0.8549 was penetrated strongly on the downside and negated in May 2005. Prices in July hit a new 13-month low. The next longer-term downside objective for the euro bears is the 2004 low of 1.1745, basis nearby futures. Below that the next level of longer-term chart support is seen at 1.1350.

The MACD chart overlaid on the monthly continuation chart for nearby euro futures shows a bearish line crossover signal occurred in April 2005, whereby the thick MACD line crossed below the thin trigger line of the indicator. Both lines have "rolled over" and are heading south toward bearish territory below the zero line on the monthly chart. Since the inception of euro trading at the Chicago Mercantile Exchange in 1998, that bearish line crossover signal was only the second ever produced on the monthly chart.

Editor's Note: In lieu of our regular weekly commentary, we are publishing the latest issue (8/4/05) of our bi-weekly newsletter, Trends in Futures, which is written by veteran futures markets analyst Jim Wyckoff. The referenced charts are included as an insert in this week's issue. Trends in Futures (TIF) examines the major futures markets with an eye on the longer-term picture. Subscribers to TIF also receive comprehensive daily updates each weeknite that look at shorter-term trading opportunities. Jim also puts out three trade recommendations every week with entry and exit points. An added feature of TIF is an educational section where Jim writes about trading theory and practices. For more information, call us toll-free at 1-800-221-4352.

 
SYMBOL=ECU 
 
SEP.05 EURO FX (IMM) 
 
Each Horizontal Line = 50 Points 
 
1 pt. = $12.50   Minimum Move: 1pt.(.0001) 
 
FND: 9-19-05   LTD: 9-19-05 
 
OPTIONS EXPIRE: 9-9-05 
 
  High        Low 
 
12/30/04   04/21/04 
 13712      11772 
 
*Note 24 Hr. Data Included* 
 
 
14-DAY RELATIVE STRENGTH INDEX 
 
(As of Friday) 
 
Up Avg .003   Down Avg .001 
 
20-DAY STOCHASTICS 
 
(As of Friday) 
 
Raw Value   91.01 
       %K   90.19 
       %D   87.92 
 
14-DAY ADX 
 
(As of Friday) ...