Inability to break 1.394 again yesterday caused a break of 1.38 and stop loss triggering and even inability to stand above 1.3635 caused further selling and forming a lower high today at 1.356 and psychological break of 1.35 not the next support is at 1.33 then 1.294. For a longer time frame you can see that there is a formed lower high at 1.471 on the recent Single currency rally after the fed's cut by .75% to continue the major downward trend it has started by another failing lower than 1.44 at 1.4365 by the end of last year on the dovish interest rate outlook differential between the single currency and the greenback as the market is waiting for further massive ECB cuts while it is nearly over for the greenback. So, there is now a high downward momentum.

Best wishes, FX Consultant - Walid Salah El Din
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