Long Term levels were broken convincingly enough to raise probability on some down side projections. There are two separate scenarios which provide an insight into how much lower this market could go. The ABCD and the Head and Shoulders
patterns are used as a reference for determining the downside potential. Regardless of whether or not the downside targets are reach an important point to make is this. The proposed neckline and the previous lows between 1.40 and 1.45 that were violated will act as resistance. One thing to look for in the mean time is a retest of the previous lows will provide an opportunity to establish short positions for everyone not already positioned.