Things do not look good for the EUR/USD with early London expected to test the important support at 1.2700 now that it is rumoured that the option protection that has kept us above this level has lapsed.
Until 1.2700 breaks the daily EUR/USD chart demands that i continue to respect the base of the upward sloping channel which also comes in around the 1.2700 level. I have also attached a weekly EUR/USD chart to further illustrate the significance of the 1.2700 level.
If the 1.2700 level does give way, expect a move that retests 1.2350, with initial support seen at 1.2500.
