The EUR/USD pair broke down below the 1.08 level, extending the bearish pressure even further. We have had an absolute meltdown when it comes to the value of the Euro, and it seems like it’s going to continue. The market will more than likely reach towards the 1.05 level below, as it was a massive support level several times over the last couple of years. Any rally at this point in time has to be looked at as a potential selling opportunity, and with the type of meltdown that we have had recently, you can expect a bounce sooner rather than later. I will not be buying that rally, I will be looking for opportunities to short based upon exhaustive candles. The 1.08 level should now be a bit of a “ceiling” in this market, and I will not hesitate to short that type of move. In fact, I don’t really have a scenario in which a willing to buy the Euro, as I believe that it has longer-term structural issues.
As the European Union struggles as to what to do next, I believe that the selling of the currency is what continues going forward. Honestly, I would not be surprise at all if we go back to the parity level given enough time, but I do recognize of the 1.05 level seems to be some type of massive barrier that the sellers will more than likely struggle with and quite a bit. Because of this, I believe that we will try to reach towards the 1.05 level, but bounce, and then sell again. Ultimately, I believe we are starting to see the death of the Euro, and in a few years it may not even exist. We have a very important elections coming in the European Union soon, with France, Holland, and even Germany all looking like ripe fields for planting anti-EU parties. In fact, in most countries around the European Union the anti-EU parties are leading. With this, I cannot buy the Euro anytime soon as the experiment seems to be failing overall.