The price bounced off the trend-line (shown in orange), and it now hovering around the 1.30 support level (shown by the bottom yellow line. Sorry about the color scheme!)
If it can get through this level, it should keep on plunging downwards.
There is a little reason for concern, however. The AUDUSD and USDCAD daily charts appear to be showing signs of stalling.
Additionally, it almost looks like this recent downward leg on the daily GBPUSD chart is a retrace from a move up from approx 15 January 2012 from 1.5300 level, which could mean the GBPUSD is about to start heading upwards again. If this occurs, look for the EURUSD to follow.
This same pattern isn't as clear on the EURUSD, AUDUSD, or USDCAD charts.
Looking at the daily EURUSD chart again, this time with Fibonacci lines plotted on the downtrend from October 2011 to 7-ish January 2012, we can see a retrace that finished a week ago at 1.3300. This move down experienced this week could be simply a wave in this on-going retrace, in which case we'd expect the EURUSD to hit 1.36 before heading lower again.
Phew! Technical analysis makes me sweat. I am really not sure what's going on, which is why I'm going to rely on my break-out strategy. While there's no clear consolidation on which to place trades, I'm still interested in selling below 1.3000 and buying above 1.3300.
