Marking time thus far this week, digesting the significant erosion last week, which signalled a still better topping structure.
- We stated last week that “having pushed into our 1.3560/50 target area, we see a more bearish tone through 1.3508 for 1.3400 into early Feb”.
- The Friday breach of 1.3508 reinforces the topping from Dec and leaves bear risk to 1.3400 this week.
- Overshoot risk for Feb is still the 50% retrace and key Q4 swing low 1.3325/ 1.3295.
- The 8-day RSI is far from OS, leaving scope to go still lower this week.
WHAT CHANGES THIS?
- Above 1.3685 eases bear risks; through 1.3775 signals a neutral tone, only shifting positive above 1.3820.
Please see full report with levels and latest audio-visual analysis here: http:/members.marketchartist.com/Daily/EURUSD.pdf