EUR/USD:
1.2577
Very Short-Term Trend: Downtrend
Outlook: Yesterday EUR rallied to 1.2685 first (shy of my 1.2690/1.2700 favored entry level) and then declined sharply. Once it moved below the 1.2640 low, the selling pressure intensified. Now, the hourly downtrend remains intact and is quite strong as the prices are below the declining 21-hour moving averge. Thus, further weakness is seen, most likely after some sideways consolidation first. In case, there is a rally attempt, it will most likely fall below yesterday's swing high at 1.2685.
Strategy: If a recovery toward 1.2640 develops, shorts can be favored against 1.2690.