Euro (Update)

Today we formed a High Close Doji pattern as we closed at 1.2096 (above the doji high of 1.201) got a bullish MACD crossover.  However, we still are waiting on a stochastics breakout (may come tomorrow) and closed under the 10 DMA (suggested yesterday as a possible resistance area).  I think we can move higher from here, but I still would look to sell rallies in this market.

Below is a snapshot of the Euro on an intraday chart (60M):

This rally has taken the route of 5 significant measured moves.  The first 3 all have deep retracements (~78.60%), which is indicative of a weak trend.  This usually sets up a good countertrend trade, which in this case would be in the direction of the longer trend- down.  Depending on what happens overnight some possible resistance zones are: 1.2190-1.2200, 1.2225-1.2255, 1.2280-1.2300, 1.2315-1.2330.  The 1.2225-1.2255 area may present a good place to get short.  I don't expect 1.2330 to be taken out without a significant correction.