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,...
It seems that the Euro has peaked and now it is turning lower (reversal). If the 20MA holds as resistance I see a decline in the next few weeks. My first target would be 1.3100. 1.3200 level could find new buyers, so at that level I'm going to move the stop loss at the entry price (1.3360).
