The Euro Dilemma -- Where Do We Go From Here?

TECHNICAL ANALYSIS

By Craig Ferguson, head of technical analysis at JP Morgan

Last week we emphasised how Elliott Wave and other mechanical techniques can be applied to equity markets, and in so doing suggested that the Nasdaq would be vulnerable to a fall, at least back towards the 3800 level. As we approach that target, it is useful to switch tack again, and apply the same techniques to the currency markets.

In light of its recent rally, we thought it would be a good idea to have a look at the euro this week,