The EURUSD has broken the string moving below the Correction Zone on the headline of German reluctance to issue EU bonds. The fall should bring about a more balanced market with buyers and sellers (the waters are a bit more muddy). The next downside support will come in at the most recent low at the 1.2679 level. Below that the important 1.2667 will be eyed. 100 hour MA and trend line are at the 1.2662 and moving higher. The combination makes the 1.2662/67 a key support area.
Although the Correction Zone was broken, it does not mean the bullishness is over. The price can continue higher, however, I will be looking for more two way flows as longs might have an incentive to liquidate some longs near high levels. With Ben Bernake and the Fed the next key event, this too may encourage the market to be a bit less trendy.
