CurrencyShares Euro Trust
Another eurozone ETF that's getting plenty of Twitter attention this morning is the CurrencyShares Euro Trust (FXE), a fund that gives investors exposure to the movement of the euro. Like EWZ, FXE isn't looking particularly bullish right now - but there's a more predictable move at play in this stock.
FXE is currently forming a descending triangle pattern, with horizontal support at $129.50 and downtrending resistance acting as a sort of ceiling for shares. Essentially, as FXE bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakdown below that support level at $129.50. When that happens, traders have a signal to bet against this fund.
The next-lowest support level in FXE is $126, a price that acted as a floor for units back at the start of the year. That price provides a good preliminary target when and if $129.50 gets broken to the downside. If you do decide to take this trade, I'd recommend keeping a protective stop just above the 50-day moving average.To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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