Euro Support at 14150

The indicator plotted above is the disparity index – a measure of the distance between the closing price and the 200 day moving average on a percentage basis. Major tops since 2008 have occurred just above 9% (price exceeding its 200 day MA by 9%). Like all momentum indicators, the disparity index tends to display divergence at its final top. Without divergence present, I am wary of calling this the final top. What’s more, the 100% extension at 15279 intersects with channel resistance in mid June. The November 2010 top at 14280 is support but 14150 is a near term objective. This level is defined by the 4/18 low and 100% extension of the 14940-14509 decline (double zigzag measurement). In summary, look lower until mid week towards 14150. http://www.tradebankerstyle.com/