If the correction in October of last year was a fourth wave, then the requirements for a diagonal ending pattern have now been met. While it isn’t a certainty that the top is in, this chart suggests it may be very close.
Share price for the Guggenheim Investments Currency Shares Euro ETF (symbol FXE) bounced for several weeks from near the our first support level at 103.56. The next question is whether price can form a higher low soon.
Although we see potential reversal signals in most of the equity indices we follow, we find some of the clearest signs in the Euro Stoxx 50 Index. Several different analytical tools identify the present area as one to watch.