Note: this is of course NOT suitable for trading. Beware.
- protecting your savings (by going into USD)
- determining the overall trend (which pressure prevails, when going down to lower time frames?)
- as well as determining important levels we might otherwise forget about.
Concluding: continued downside pressure is what you'd be looking for,, the current frenzy in EURUSD is NOT changing that at all.
When trading the shorter swings, positions to the downside should be taken around 1.19 / 1.21 (now compare these levels to those on the - hey, surprise!). I am convinced those levels won't be breached, setting us up for the next leg down to parity. By then.... PERHAPS.... a positive divergence can form (but this is even farther ahead people!)
Fib target level: 1.007
Personally, fundamentally speaking (!) I would not be surprised to see that break, too. To then see the EURUSD retrace all the way to approx. 0.90). However, that's highly speculative and there's NO way of telling so from this chart.
A collapse in Euroland might cause it, or a worldwide flee into the 'safe' USD might be a cause too. The good thing: as long as we stay alive, we shall see it either happening - or not.
The market will tell.
On a final note: there is definitely NO positive divergence yet. On the contrary: the is now just CONFIRMING the negative mode for EURUSD . Continued pressure DOWN is therefore what you'd be looking for.