Great Graphic: Euro Targets

This Great Graphic, created on Bloomberg, shows the euro's performance against the dollar over the past year.  It contains much information.  

The white trend line off last July's lows has been clearly violated in recent sessions.   The rising purple line is the 200-day moving average, which while difficult to see it as a support line, it is potentially important from a psychological point of view.  It comes in now near $1.3625.  

In addition, in our experience, the euro, like the Deutsche mark before it, seems to frequently make extremes in the form of double tops.  In late Q1 the euro approached the $1.40 level and did so again last week.  It has now gone through the neckline, drawn off lows recorded in between the tests on $1.40.  That neckline is seen near $1.3675.  From the double top highs to the neckline is roughly 3 cents.  The minimum target of the double top is roughly $1.3375 (flipping the double top over on its neckline).  

This level corresponds to the blue horizontal line, which represents a 50% retracement of the rally off the July lows.   The other key retracement objectives are also denoted on the chart by the upper horizontal green line (38.2% retracement at $1.3520) and lower horizontal green line (61.8% retracement, just below $1.3230).