Over-View:

The Euro is still the Stand-Out Currency to Trade (in my view).

USD’s dominant classical Chart pattern remains a multi-month (multi-year, in fact!) Head and Shoulders Reversal (refer Weekly Chart below) and unless this formation is invalidated, it will continue to cast a very “dark shadow” over the Euro for some time to come.

TODAY:

The Euro now has resistance at 1.2390/1.2415 (maximum risk at 1.2470) for Sell-off toward 1.2290/1.2275; enroute to 1.2145/1.2130 (see Daily Chart below).

This forecast (along with JPY, CHF, GBP, AUD and NZD) is updated in my FX Forecasting service, emailed daily in PDF format to my worldwide subscriber base. A three week trial of the service costs $50. Email TRL@clear.net.nz