I would expect that rallies would be sold. The low for the move has banged against the lows from yesterday on the first look (see hourly chart).
The lows are being tested on the first fall.
The 38.2-50% of the move down comes in at 1.23267- 1.23365.
UPDATE: BREAKING lower now. The high correction came in at 1.2324 – short of the 38.2% of the trend move lower. Bears remain in control.
The 38.2-50% should solicit sellers now
Looking at the daily chart the 1.2249 is low trend line. Below that the 1.2222 level is off the monthly chart from preview (CLICK HERE). The 1.2131 seems more of a possibility. This is the 50% of the move up from the October 2000 low for the EURUSD (the post Euro introduction low).
Does the ECB comments yesterday matter? Or does the Fed trump ECB. I would expect the Fed to trump the ECB news.
The 1.2249 is the next target on the daily. 1.2222 below that level.
