Last week, I mentioned key support levels on the Euro, and once those were broken, the Euro fell hard.
This week, thanks to the non-stop "everything is fine!" string of announcements from European leaders, the currency has sprung back strong. But take a look at this very interesting little chart I've put together:
So we have, in both 2009 and 2011:
(1) A steadily rising trend;
(2) A break in the trendline (red arrow);
(3) A swift fall;
(4) A recovery back to the last major support level (green arrow)
Beginning in January 2010, this is the exact sequence which presaged a huge, huge fall in the Euro. It'll be interesting, to say the least, to see if history repeats itself.
