FXstreet.com (Barcelona) - The Euro is weakening sharply on early European session as reversal from last Thursday's high at 1.4325 has extended below 1.4120, and the pair advances towards 1.4100.

According to Ian G Coleman, collaborator at FXstreet.com, the Euro could be ahead of a large decline: Divergence on the Daily chart to sell at the top. 4 Hr chart we have trend line resistance at 1.3970, which is virtually bang on where we would see an ABC correction. The last move up did retrace to 61.8% in a corrective manner (3 waves) so it has me thinking this may be the start of a bigger move down. We have the first target at 1.4086 (previous low) then the 1.4000 area. If we break here we are going to 1.3863.

Initial support level comes at 1.4085 (Aug 12 low), and below here, next support could lie at 1.4050/60 and then 1.4005 (Jul 29 low). On the upside, above 1.4120, initial resistance comes at 1.4170, and above here, 1.4210 and 1.4265/70.