We've had quite a run on the CME Euro Futures but there are some substantial Fibonacci price factors which need to be considered for the longer term. Here's a weekly chart of the continuous 6E contract:

Click on image to enlarge!

We’re currently testing the weekly .618 retracement resistance of the last swing high to low shown with the first red trendline. While there’s usually a lot of focus on the power of this retracement, I consider the next level at 1.3975 as key. A break of this .786 resistance would indicate a change in the pattern on the weekly chart, calling the target at 1.4658 into play. That would take out the prior swing high on this chart and establish substantial longer term support. A more important factor is that it would also violate the longer term .786 retracement resistance at 1.4443.

If we see a weekly close above that level derived from the 2009 high to the 2010 low, the larger target above 1.6000 would then be in a position to “pull” price even further upward, implying that we’ll break that 2009 high. That puts a great deal of pressure and emphasis on the importance of the first .786 resistance at 1.3975, since a close above that point is likely to start this chain reaction.

We’ll monitor the remaining resistance in this swing with an emphasis on 1.3975. On shorter term charts the key will be whether support holds on pullbacks and we continue to see long side CCI triggers.

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