Is the Euro Rally for Real?

07/16/2010 9:59 am EST

Focus: FOREX

Thomas Aspray

, Professional Trader & Analyst

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The euro futures have had a powerful rally after bottoming in early June. No signs of a major bottom as the weekly and daily OBV did confirm the lows. The daily OBV formed a negative divergence at the December highs. The 38.2% resistance stands at 1.3120 with the 50% level and significant chart resistance in the 1.3500 area. No signs yet that the rally is over and I would expect to see the formation of a continuation pattern that would take a few weeks.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.