EURUSD Mar 04 to Mar 08 Outlook

Recap
Bulls were not even given a chance to fight back. The initial pop at the beginning of the week failed to clear Y-0. That gave us the Y-1 test. Euro flushed through Y-1 and stopped only when it reached 100% absolute range. It then failed to clear Y-1 giving us Y-2 by the end of the week. Closed the week near week low and Y-2.

Outlook
Euro at 1.30 is the long term bull / bear line. I thought no one would dare to test Merkel’s warning message that 1.30 is the bottom of the acceptable range. So here it is at 1.30. If central banks intervene, we get B+2 in 1 go.

Any signs of a bottom will trigger shorts to cover as the fear of central bank intervention will do the job. Focus on swing long potential from here.