A chat-room denizen said he was looking for an ‘important bottom’ in the euro, but the hourly chart shown is not encouraging on that point. Notice that a downtrending ABCD pattern that took nearly a month to play out bounced almost precisely from the 1.2707 target. However, the fact that the rally was weak and lasted only a day before the futures broke to new lows is indicative of a downtrend that very likely has farther to go. Considering how long it took for the December contract to hit the target, we might have expected the bounce to last for at least 4-6 days. The one-day reaction implies not only that sellers remain unsatiated, but that they are eager to exit despite the extremely oversold condition of the euro. How might that affect he currency in thw weeks ahead? A trendline on the weekly chart looks more suited to projecting an important low than any Hidden Pivot support I can identify. Connecting up key lows recorded in June 2010 and July 2012 suggests such a low could occur at around 1.2214, roughly 3.7% below current levels.
