There is too much made of Eurozone weakness and USD is not exactly out of woods. Specially if the expectation of rising interest rate do not materialise soon.
Consequently, EURUSD could mount a strong rally to retest the declining major resistance line before another down swing to completion of the triangle, or we have near completion of 78.6% Fib retracement of the June 2010 - May 2011 swing.
on weekly suggesting potential over extension and signalling climax in the offing. These observations are even more clear on daily time frame.
I note that when EURUSD formed high in 2008 a famous model went public by asking to be paid in EURO rather than USD. Then with 2012 low, many institutions were busy exploring possibilities of EURO disappearing and mitigating or managing contractual obligations.
Now the likes of Honeywell hedging their EURO revenue and major banks charging the negative interest rate could this all lead to potential bottom being formed in EURUSD?
Here is the updated chart with 5 wave decline and looking for a significant low in the region of 1.25 - 1.24