Euro fell strongly yesterday after Moodys lowered Portugal debt to "garbage", what was supose to be a test of the support at around 1.4440 ended up in a broken support, today we will follow closely the market as all indicates that the euro is going to attack the support of 50 days MA. As i said in past post we had to be carefull as another retracement of the value would en up in confirming the downtrend, all of those who were on a long position, are probably losing money today as all stop losses are problably triggering and making the market more bearish.
What should we spect? well, we want the market to close on a strong bearish formation, a big black candle would confirm the down move, if the market closes with a reversal pattern, we will wait (as always) for confirmation. If the downtrend prevails our target will be around 1.4125, in contrary if we spot any signals of reversals the first target to attack would be around 1.4575.
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