EUR/USD is heading down towards the 1.31 level. It looks very bearish at the moment but the stochastics are telling us it is very oversold. Expect bearish price action but be aware that there could be a fast and sudden retracement, especially off the 1.30 level.
I'm feeling bearish over the weekend. I'm only looking to make 50 to 150 pips... Even though Greece struck a deal, I Just don't see the euro recovering from such a volatile week to touch 1.34 again. The US has been putting out good economic data this past week and the usd/cad looks like it's at a the end of a long downtrend. I expect the usd to hit 1.00 by Monday, hopefully shooting the euro down to 1.29 -1.30
I'm decidely bullish on the EUR/USD long term. I know all the focus is on Brussels and the new government in spain, but long term, it just isn't looking great for the USA. It's been said today that even more money QE3 could be printed in April!! This infographic says it all really, the U.S. is in deeper than they can get out (ZeroHedge, Forex). It's funny, I read an article today that highschool students in the USA are being taught about the US debt: Look what their parents have left them with...
The chart below is clear bullish bounce off the 1.31 support.