I wrote this over the weekend primarily for myself and a colegue. Ive taken out a section about the longer term view with the weekly and monthly charts, basically am bearish untill i get some new information.
The only thing to add for eur$ would be that with new information, the past three days, we are seeing a pullback at my first target area which is also a fib retracement area taken from the sept low to the oct high.
EUR/USD
The daily chart shows a failure to make new highs and shows several signs of a reversal and a confirmation of the move below 1.15 would see targets of 1.14, 1.12, 1.10 and 1.0750 we could expect pullbacks at these levels or a turn and will have to be reassessed with new information.
The hourly chart shows a very distinct down trend with a failed upswing adding to the bearishness of the chart. Apart from the trend there is no indication of further declines and I would suggest a temporary consolidation, which may well happen in the Asian trading hours from Monday morning. For now it is on the low of it trading channel range and an advance or a consolidation will give it room for a further slide.
Over all the indication is down. There has been no new high made and if it had been I would have thought that it could have taken it to new ground and last weeks targets suggested a move above 1.19 through to 1.29/1.30.
As events unfold these formations will be reassessed.
