Last week I told that EURO may reverse its position as it was in short-term over-sold position.
Its last day move indicates that EURO may drop more in coming days; technical indicators are now in less over-sold position than last week. So we may see that EURO is triggering the bearish pattern, which can take EURO near 1.25 range. Therefore its long-term pattern which says that EURO will be around 1.15 may become true.
If somehow EURO rebounds from this level then it will face resistance at 1.34. If EURO crosses 1.35 then it may trigger a pattern which can take it towards 1.42. I will think about its upside when EURO crosses 1.36, investors who took short positions may think about covering their positions if Euro goes level above 1.36.
Here I must say that if macro events push EURO to follow upside resistance then I am expecting this in early to middle of the week, but if tests it in later days of the week then it will be not beyond 1.34.
[EURO is given against US dollar, unless specifically told.]
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