remember, if that EUR/USD makes that new low under the 1.31 level, not only does that confirm a new short-term downtrend but it increases the odds that a new intermediate term downtrend is underway. the fact that the EUR/USD was rejected very impulsively off a re-test of it’s uptrend line on the daily chart (posted earlier) was the first sign that the current intermediate-term uptrend was/is at risk. of course, the primary downtrend is still very clearly down so this only adds the red flags that continue to build on this rally in the equity markets. with only an hour to go in the trading week, we’ll have to wait until next week until we see if this level holds or breaks.
