The Euro has given us a healthy rally since the low put in on June 7th, but it’s also coming into very strong timing resistance factors as seen on this daily chart:

Click on image to enlarge!

By measuring the most well defined corrective rallies on this chart and projecting the number of bars in each rally from the June 7th low, we can see that this weekend marks 100 percent of the amount of time in the February to March rally. A stronger timing factor is that the other 2 rallies measured project tomorrow as 1.272 and 1.618 ratios – meaning that this rally is becoming over extended in time.

A close up using the 60 minute chart will show the immediate pattern where price resistance will be amplified by these timing factors:

Click on image to enlarge!

The drop from the recent daily high formed a perfect Gartley support pattern. As of this writing price is holding right at the .786 resistance measured from the recent daily high to the hold at Gartley support, 1.2399. I’ve just included the chart from earlier this morning above so that you can see the Gartley support pattern clearly. With the new high against the .786 level, the support levels are recalculated and the new chart is below:

Click on image to enlarge!

The prior resistance breaks make it more likely that the current .786 resistance will break too. If that happens, we’re looking to the near overlapping targets labeled. That would also represent a new daily swing high, and those targets would indicate that price is extended as well. If we meet those targets during the timing resistance patterns, it would indicate that both price and time are extended. So let’s watch that area as a key decision point! If the pattern is going to maintain we should see a rapid drop from there. If we rally through the price and time resistance, the pattern of the last year’s timing rhythm would be disrupted and we can expect an upside acceleration instead!

The same concepts and similar levels apply to the CME euro futures. Check out my website for an update.

For more from Mark including his “Chart of the Day”, visit MJBraun.net.