To recap price action for the last week, the EUR/USD gave us the price action we anticipated. After the close on Friday January 11th at 1.2217, the market did shake out weaker long positions initially down to 1.2135 as we suggested from our post. This allowed shorter term traders to get confident buying into the bounce again before stopping out their remaining longs, while closing the week much lower at 1.2080. In looking at the week ahead, we see the EUR/USD with further room to slip down to the 1.2030/40 area which should also align with other Euro related cross pairs, including EUR/GBP and EUR/JPY which are all approaching oversold status and will have room for a bounce higher.
