FXstreet.com (Barcelona) - The Euro has been dropping continuously during the current week, after having peaked last Thursday at 1.4445 year high, to reach levels right above 1.4100, where, according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, expects the pair to set a base ahead of a rally at the end of the month.

Elliott affirms that the Euro is not longer overbought and it could start basing activity at current levels: Stopped dead in its tracks at the middle of the previous consolidation pattern. The Euro is no longer overbought and one-month at-the-money implied volatility has picked up a little. We shall continue to watch for basing activity for a rally later this month.

Concerning strategy, Elliott advices to attempt longs at 1.4130: Possibly attempt longs at 1.4130; stop well below 1.4100. Short term target 1.4300, then 1.4400.