The Euro is trading just below critical resistance against the US Dollar at 1.4183, the top of the range that has confined the pair since late May and the 50% Fibonacci retracement of the 07/2008 - 10/2008 decline from record highs above 1.60. A weekly close above this level would expose the 61.8% Fib at 1.4621, while a reversal downward would initially target the bottom of the range at 1.3745 (the 38.2% Fib level). A weekly close anywhere below 1.4183 would produce at worst an Inverted Hammer, hinting that the markets are favoring a bearish reversal going forward.
