EURUSD—bears in control

Euro closed last week at 1.3691which keeps it under pressure. You can see on the monthly chart below that it didn't quite make it to top of the channel before faltering at 1.4283. Although there may be a near term bounce, I'd expect Euro to weaken unless it easily clears resistance in the 1.3825/85 resistance zone (EW count, fibo, and 10 and 20 day SMA). I'll short from there or if weakness continues this morning from the 1.36 area. However, note that for the last two months, the 20 EMA is essentially providing support (currently 1.3571). If that fails, the price target is 1.3335.

Here's the monthly chart.










© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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