We’re coming up on the strongest target and resistance factors on the CME Euro futures since the low established on June 8th. Let’s take a look at the daily chart:

Click on image to enlarge!

1.4266 is the 1.272 price extension of the March high to the June low. Right above that, 1.4283 is a near overlapping 1.272 target of the current swing high to low as shown with the black trendlines. These targets should serve to “pull price” a bit higher, but the key factor beyond that is the 1.4400 resistance; that’s the .786 retracement of the November 2009 high to the June 2010 low. If that breaks, we’re targeting above last year’s high, so it’s a very significant decision point and may arrest this rally.

In the shorter term, if we’re going to see the upside target overlap immediately, we’ll need a break of the 1.4056 resistance factor. As long as that holds, there’s a possibility of a more complex correction to downside before the rally can resume towards the major upside targets.

Near the bottom of the chart, I’ve circled the 50 CCI momentum indicator in green. As long as that stays above +100, it’s telling us that there’s sufficient momentum to break that key resistance within the current swing. On pullbacks, we’re monitoring shorter term charts for support holds and additional long side triggers, as long as the daily 50 CCI remains above the key +100 level.

Here’s a current 60 minute chart with the strongest support factors in bold:

Click on image to enlarge!

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