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Countertrend Rally for Euro, Emini S&P 500


Anyone who can grab a microphone in Cannes is jawboning the Solution, the Euro, and the Euro-zone commitment to go forward with Greece ... in one big loveliest, which has goosed the Euro/USD up above this morning's "rate-cut" rally peak at 1.3835 to another marginal new intraday high at 1.3855.

That said, so far the up-leg has not followed through to the upside, which is curious technical behavior on the second hurdle of 1.3830. Inability of the Euro/USD to sustain and accelerate above 1.3830/55 will be a technical warning signal that the Euro/USD may not be as "strong" as it otherwise appears.

Nonetheless, a close above 1.3830 will increase the likelihood that the rally off of Tuesday's low could still claw its way to test the near-term resistance line at 1.3980-1.4000.

As for the e-mini S&P 500, which has moved in sync with the Euro, the countertrend rally continues and points next to a test of its near-term resistance line, now at 1263.

At this juncture, a decline that breaks 1249.50 is needed to trigger preliminary signals that this vertical assault is exhausted, while a break of 1243.25 is needed to confirm that today's up-leg from 1213.50 is complete.

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