We had a very clear Gartley resistance pattern on the euro, both cash and futures. I'm using the cash charts here for the moment since we're in the process of rolling on the futures, but the same info applies.

Here’s a 60 minute eur/usd chart:

Click on image to enlarge!

The zig zag from November 25th to December 2nd is a perfect Gartley resistance pattern. While it looks like this was building a new pattern of higher highs/higher lows, if you can recognize this pattern setting up you’ll be able to avoid getting trapped in longs and also you’ll know when to take advantage of additional short side.

I’m expecting more downside; here’s the daily chart:

Click on image to enlarge!

We still have outstanding daily downside targets, 1.2845 and 1.2301. I left in the key support levels to show why we’re expecting these targets. Once the daily closed below 1.3309, the target at 1.2301 came into play. Of course the current swings are a bit extended having met the 2nd target from that intraday Gartley pattern, so be on the lookout for a bounce but remember that long side is very countertrend at the moment. I’d stick with smaller positions if trading longs. And while we’re looking for 1.2301 eventually, there may be stronger bounces along the way. 1.2845 is a great place to look for that possibility too.

If you’d like more information on the Gartley pattern, please check my site for videos and printable “cheat sheets”.

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