To view the full EURUSD report with screencasts, click here
A new setback low Wednesday leaves bias for further erosion for today, this week and for January.
The Monday plunge through the psychological/ option target at 1.2000 and a target at 1.1876, the 2010 low set a still more negative tone.
This price action reinforced negative pressures from the Friday through the 2012 low at 1.2042, that in turn reinforced 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 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 through 1.1802/00, with threat to 1.1760, maybe 1.1700.
- But only above 1.1897 target 1.1957/77/90, which we would look to try to cap.
3 Hour EURUSD