Looking to SELL EUR/USD next week.

FX:EURUSD   Euro Fx/U.S. Dollar
Last week we wondered whether Draghi and the ECB would bring out the big guns and make a determined effort to weaken the EURO             . Initially it looked like he did but then his casual "no need for further rate cuts" comments sent the EURO             into space. Difficult to understand why he would say something that would have such a significant impact on the EURO             unless he just didn't realize which questions his credibility but all that is now history.

Where to from here?

The EUR has hit significant resistance coming in the shape of the 38.2 Monthly Fibonacci and with the RSI heading south its my bet that we're heading lower.

I think last Thursdays astonishing 400 pip move was overdone and extreme and I believe the markets will look at the fundamentals and realize this.

I believe we are headed lower from these levels. I'm already SHORT this market (and other EUR pairs) from 1.1179 and am looking for a move back to 1.0990 area over the next few days and ultimately down to 1.0711 support.

I shall update this analysis on Monday.
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