The cluster of downtrending Gann angles at 1.3264, 1.3271 and 1.3287 once again proved to be too much resistance for the Daily June Euro futures contract overnight. In addition, the single currency failed to take out last week’s high at 1.3273.

Besides the Gann angle resistance, the June Euro also met opposition inside of a major resistance zone. After briefly touching 1.3269 early in the trading session, the market is now trading below the 50% level at 1.3247.

James A. Hyerczyk Forex, Futures & Equity Analyst

If downside pressure continues, the Euro should test uptrending Gann angle support at 1.3200. This angle has held on a closing basis since the market bottomed at 1.3000 ten days ago. A close below this angle on Monday could trigger a break to 1.3137 over the near-term.

The combination of the downtrending and uptrending Gann angles has formed a triangle chart pattern. The triangle chart pattern is a non-trending pattern because it compresses prices into a sideways or rangebound trade. This, however, is often indicative of impending volatility. “X” marks the spot where the Gann angles and the 50% level converge on May 2 and May 3. This area is going to “make it or break it”.

For more information, please visit: http://patternpricetime.com.

fetDBgMEYCk