March Euro Poised to Change Trend to Down

Concerns over the U.S. fiscal cliff becoming reality are helping to drive the March Euro lower overnight. Currently, the market is finding support on an uptrending Gann angle slightly above a main bottom. A failure to hold this angle will be another sign of weakness while a break through the swing bottom will turn the main trend to down.

Although the March Euro traded through a short-term resistance zone at 1.3246 to 1.3263 on Thursday, the market wasn’t able to hold on to these gains. This zone was tested again overnight with the sell-off signaling a complete failure of the 50% to 61.8% levels.

Besides the retracement levels, downtrending Gann angles should be watched for resistance. The angle which stopped the market on Thursday dropped down to 1.3291 today.  Overnight, another angle at 1.3261 provided resistance. During the session the market penetrated the main Gann angle at 1.3201 but the market quickly recovered.