Euro is trading into a bear channel started on the 27 Dec 2013. Friday 07 Feb 2014 close is at the upper parallel line. We are in overbought territory in the short term. A trade below friday low would project the next wave down to 1.3300 support. Targeting 1.3300 during the week 17 - 21 Feb 2014.
Euro is moving lower. Price bounced back at the 20EMA and is moving towards the bear median line. Target around 1.33370.
Risk : 0.088% Reward : 0.16% R/R Ratio = 1.85 Probability - Medium Trade will expire 15 November
Market in downtrend - interesting bear flag pattern formed below the 20EMA and in proximity of the down-sloping parallel line. A trade below 1.28170 would confirm the trend continuation. Preliminary target set at 1.25300.
As long as 'austerity' is the buzz word out of Europe I see little to no growth and a long slow decline in the Euro - FX. One by one the 'PIGS' will slowly exit the trading zone amid a very sanguine economic backdrop. Should Federalization ever gain traction (exchange of country debt for some sort of Euro debt instrument) this market will take off. Ironically,...