Driving bears to establish a new 12-month low was a credit downgrade of Portugal and Spain by the S & P, following Greece's downgrade to junk status yesterday.

Daily Outlook: As with yesterday we are still in two bearish channels on the charts. The shorter term channel (orange lines below) is providing the immediate direction, though the big bounce yesterday came when the price touched the lower channel of the longer-term support (blue line below - it is daily support and a bit hidden on the 1h chart).

This pair might have a bit of a bounce but I am still very bearish and will only be looking for areas to sell.

Trading Idea: Primary area is top of bearish short-term channel (orange lines below), currently 1.3300-1.3315.  Short targets from 1.3300 are  1.3270, 1.3240, 1.3210 and 1.3180 (for 120 pips profit). Another aggressive trade would be a short on a sustained break of 1.3175 (sustained break on the 1h) as the pair is having diffculty holding on to much bullish territory.

(click to enlarge)
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Source: Forex Signals - EUR/USD Bearish Channel Forex signals from: PipHut.com