After failing to break and close above 1.49 there has been a significant drop to 1.4760.   This was due to the huge drop in oil and continued strength in the dollar.   We created a couple of trendlines from today’s drop has built a little channel.   Now that this has happened there looks to be some more bearish pressure for the Euro.   The Euro zone economy is very focused on inflation and rates don’t look to be coming down any time soon.   The Dollar still has some more room to grow here though.   There is still the possibility that if 1.47 is broken to the downside then 1.45xx could be achieved, even as far as 1.4350.   On the other hand, if support is found at the current level of 1.4760 then another push to test 1.49xx-50 could be in the near future.

One more Euro chart.  This is very long term and could spell out the future of the pair.

More bullish failures here too!   Today’s bear move was quite large, 260+ pips to be exact.   The failure to close above 1.8785 translated to a push down to 1.8500.   It looks as though the bear is in control moving into next week and the next level is 1.8300. There is so much bearish pressure for this pair it is hard to call a bull target or resistance at this time.   Today’s chart is the monthly time frame and shows the gigantic candle that has been created and the potential next fib level from the 7 year Bull Run.

Today’s bull move on the yen was also impressive.   108.30 have proven to be a strong support zone as it was proven as a strong resistance zone in the past. The failure to close below there took the price back up to 110 with more bullish strength to possibly come.   This kind of move makes a strong case to see the price target of 113.35 to be accomplished.   The start of next week is dominated with news from the real estate market, which is probably already priced in.   We’ll see; should be exciting.