Multi-month trend line resistance for Greece's benchmark index, if broken, could signal a short-term rally for the euro, which now tests major retracement levels.
Greece's ASE index topped out on Oct. 15, 2009, leading EUR-USD to the downside by 30 days. Since then, trading patterns for the ASE index have closely mirrored that for the euro. Plotting EUR-USD with a 30-day lag beneath the ASE index illustrates those similarities. Trend line resistance for the ASE index near 2000.00, if overcome, would imply declining risk aversion and a future short-term rally for EUR-USD.