A second negative candle pattern was printed the past week following a similar one the previous week. These candles suggest loss of upside momentum because of the pair's inability to sustain its gains. What does this mean for EUR at this juncture? Since the possibility of further gains is diminishing by the day, we think the pair is likely to head lower in the new week. This leaves the next downside target at the 1.3494 level where we expect a reversal of roles as support to occur and possibly turn the pair back up. Below there if seen will target the 1.3245 level and then the 1.3000 level. Alternatively, the pair will have to break and hold above the 1.3859 level to reverse its current bearish build up. This will set the stage for a move higher towards its Nov 08'2010 high at 1.4083 level. Further out, resistance comes in at the 1.4281 level traded in early Nov 2010.
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