Euro

Euro/USD pair currently pulling back within a down trend.  The steep Fib. retracement of 78.6% has been a typical move of these pullbacks going back to June of last year.

So, a move to the 1.38's wouldn't be unrealistic.  This would fall in line with the higher time-frame's upper trend line

Of noticeable importance is the January lows in the 1.26's.  If these lows remain intact this gives the pair a structural higher low and potential inverted Head & Shoulders on the higher (monthly) time frame.

FXE base

After recovering from all the hype in the early part of this month, the Euro currency has come back to a previously accepted value range.
Looking at this weekly chart of FXE, the measured move jumps out at you:There are a couple of Resistance zones overhead, but price looks more interested to test what's above than what's below at this point in time.$125 will be a big pivot to clear. If it can recover $125 support than there's a lot of clear air between that and $135 to test.

re-updated Euro

A capture I made Wed. nightand an updated chart (I changed the horizontal support line slightly)
and again:

Stay Tuned...

{updated} Breached support, tested, failed:

...for the Euro is at quite a precipitous level....will update the later as it develops. To go back and look at the progression of this chart take a look at this embedded link.
Here's a weekly look:

Euro open

{updated}Here's a more recent look at the Euro futures following last night's post.
Watching the Euro and ES futures ahead of what should be an entertaining week.
I've posted the Euro futures chart before with this Andrews median line stretching back for some time. While the bottom dropped out last week, price recovered slightly with an a-b-c pivot, giving us a short-term pitchfork projection, and where did we open today? Right at the top of the Upper Median Line. Afterward we retraced back to the mid-line (corresponding with our long-term pitchfork's Lower Median Line, in red) before continuing higher.
Meanwhile, the ES opened right at it's mid-line and now rides its lower median line up

Euro

{updated}Off of last night's post, here's an updated chart of the Euro with some nice reactions off of our median lines, particularly that of the long-term Upper Median Line:As the profit taking off the Euro lows subsides we got some nice examples in Andrews pitchfork setups.
The red median line goes back to April 12th and includes 25% warning lines (white dash lines parallel to the upper and lower red median lines). Once price broke down from a long-term support level (1.32) short covering brought price back into a consolidation range between the upper median line and it's 25% warning line before breaking out.
The Yellow pitchfork is a result of the most recent 3 pivots and the handle (yellow dash line) provided a nice point of resistance. A retest of this handle mid-line resulted in a sell-off back to the long-term median line's 25% warning line. It should be interesting to see how price reacts to the confluence of support below (the 1.32 price level, the Red upper median line and the Yellow lower median line).

Euro Update

A self-explanatory chart of the Euro futures as an update to my previous post.

action reaction

The fundamental concept behind the Andrews Median Line (Pitchfork) is that of Action-Reaction, and as such can be broken down into vector analysis. It is not some useless drawing tool as I once thought it was. It is very much a way of marking a path in which price is likely to travel following a momentum shift. Much like the law of equal and opposite reaction, as price initiates an impulse followed by a pullback followed by continuation in the direction of the original impulse, the Median Line is a means to mapping that phenomenon.
Two recent charts that have caught my fascination are those of the Euro futures and the Dow Jones Industrials with an Andrews Median Line overlay. Of course this isn't a buy here, sell there type of tool, but used in conjunction with Support/Resistance and other price indications it can be valuable in terms of targets and determining price strength or weakness.
Recently the Euro has shifted into a downward slide. Once you have the initial 3 impulse points you can draw a road map for potential price trajectory. I have been following this chart for over a month now and have been quite impressed with the way it has contained price within the Median Line boundaries. Especially curious was the way it reacted off of a test of support. The 1.3250 was a previous support area, and after slicing through that to test 1.3200 the 25% warning line gave a potential support target. The short covering that ensued at this 1.32 level found resistance back at the pitchfork's mid-line, before rallying all the way back to the upper median line, where more profit taking occurred.
Next is the Dow Jones Industrial average on a monthly basis going back to the 1920's. Of course I used a log-chart to give a better depiction of price over such a long period of time. I also used a variation of the Andrews Median Line known as the Modified-Schiff variation (an available option in the Tradestation software). This variation to the Andrews pitchfork is used in cases when the price anchors used result in an overly steep projection.
The price anchors used are (1) the impulse off of the 1932 market crash lows, (2) the wave 5 termination highs, (3) the ABC correction lows. So, you have your 5-wave momentum impulse up (action), followed by an ABC correction down (reaction). Here's what you end up with; it slips out of the 25% warning line in the late 90's, but come on! Look at that bounce off of the mid-line in 2009!!