The euro held our resistance and came sharply lower. Once we broke below the base of the upward channel at 1.3480 sellers grasped the reins, and as we came down we have seen overnight lows of 1.3413, and we look like we may have based short term for a while. However, although looking basey from the short term charts we are beginning to turn on the daily ones, so profits should be taken quickly. There is scope to reach the daily pivot at 1.3477, and also the break point of 1.3480. So, this is where we cover all longs, and look to re-sell. Keep stops then above 1.3500. Above 1.3500 and we see scope for 1.3550/58.
Now, if we fail to hold over 1.3400, then there should be another sell off, but we have good support at 1.3383 from the 61.8% Med term fibonacci. And, this is an important fibonacci thus is likely to hold, especially as the short term charts are so oversold. But, remember that we are turning lower on the daily charts, so the pressure is to the downside and as soon as those short term charts unwind their oversold indicators we are likely to trade lower again. There is a good chance for another test of the 1.3295 support going into tomorrow or early next week.
EUR/USD Daily Chart" title="EUR/USD Daily Chart" width="965" height="603">