Remember, for a FREE trial of all our FX and other reports sign up by clicking here
And to view the full EURUSD report with screencasts, click here
EURUSD aims for multi-year, 2005 low at 1.1641!
A break to another new setback low to reject the basing effort and despite the bounce, resistance has capped at 1.1830/41 with firm barrier at 1.1872 and 1.1897.
The setback this week leaves negative pressures intact for further erosion through mid-month and for January.
The prior plunge through 1.1876, the 2010 low reinforced previous negative pressures from last Friday through the 2012 low at 1.2042, that in turn enhanced the December breach of the key neckline supports from 2010 and 2005 (see the Monthly chart).
Short-term Outlook - Downside Risks:
- We see downside bias for the 2005 low at 1.1641 into mid-January.
- For latter January the threat is to a monthly low from 2003.
- For Q1, the risk is now maybe as low as the 61.8% retrace of the entire 2000-2008 rally at 1.1210!!
Momentum: The 8-day RSI, short-term momentum is OS, but we still see scope to go lower this week. Momentum is confirming the new lows.
- We see a downside bias for the new 1.1728 low and then 1.1700. Threat is then to the 2005 low at 1.1641
- But above 1.1830/41 opens risk up to 1.1872 and maybe 1.1897, which we would look to cap.
2 Hour EURUSD