The stock markets continue to go up and EURUSD continues to go down. Still, the pace of the decline is doesn’t look very clearly impulsive. We could still be into a very complicated correction of the last move up from between 1-3 December. But this is just subjective observation. To be objective I should look at tomorrow’s calendar and notice that again we don’t have important events neither in Europe or in USA. But in Asia we will have the monthly monetary policy statement and BOJ press conference which could move the markets significantly.
From a technical point of view, my proprietary hourly bands show me that EURUSD is entering oversold territory. But if this move down will become impulsive (because until now I don’t see it this way), than there’s clearly more room to go south. I see important support near 1,3044. Bellow that we could have another support near 1,2975 (where my proprietary daily volatility bands currently lye).
To the upside I see resistance near 1,3266 and again near 1,3360 (Friday’s high).