The overall negative sentiments in Europe particularly in Greece and its parliamentary crisis now has dampened the EURUSD to as low as 1.2640 over the past week. The re-emergence of these reports have finally pushed the Euro to its all time pyschological support price of 1.2580. While some analyst have called a lower price within the months to come.
The weekly chart certainly looks to have gained its technical bear momentum backed by the rally taken by the USDx and made a slight recovery from its low by closing at the 1.2775/80 level for the week ending the 18th of May. However, this closing has penetrated its monthly H/S neckline formation giving the signal of a continuation for the bear trend while daily corrective movements are expected more in volatile fashion as we draw closer to the last two trading weeks of the month. The probability for the EURUSD to drag its momentum lower would come from the technical correction of the USDx after touching a high resistance price of 81.55/78 levels marking a retracement for the time being. But due to the extreme volatility that would occur alongside the EURGBP cross, there would be some limited downside potential as other traders may expect.
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