EURO fell sharply previous week as i've forecasted and for now only 400 pips down. This week I'm expecting for it to extend losses and to retest 1.40 again but before that we need to break 2 strong support levels - first is @ 1.4250 and second is 1.4170. If break of the second is successful we are going to retest 1.40 and even the last month low. But remember that any drop will be short lived and very soon we are going to recover back to 1.44 because of the Mr.Trichet 'promise' to hike rate next month. Everyone looks for better level to enter LONG, so be very carefull. There will be another strong upside move @ month end. But now the levels are too high to enter LONG so wait a little bit more, maybe this whole week. There will be consolidation and slowly slide of the EURO. For now EURO is still capped @ 50% FIBO retracement and downside border of H4 Icimoku.

My forecast for this week is EURO from 1.44 to 1.4160 and for today you may enter SHORT @1.4350-60 first take profit @1.4260, second target @1.4170 but maybe that will not happen today. Don't forget to place stop above 1.4410 because everything is possible.

Any comments are welcomed.