The EUR/USD pair gapped lower at the open on Monday, as the bearish pressure on the Euro continues. Breaking below the 1.33 level was of course a negative sign, and we believe that this market continues to drift lower, probably targeting the 1.30 handle first. After that, we would anticipate this market heading down to the 1.28 level, where you would see much more significant support based upon longer-term charts. With that, we appear to be in a “one-way market”, as the trend continues to strengthen overall and the US dollar continues to be favored.
