The EU clearly broke the neckline of the head and shoulders pattern discussed in previous posts on Friday. Price is retesting that neckline and should continue to move down if that level holds as resistance. I am looking to short on the retest of the neckline and weekly PP with a target of 1.3445. Quick 40 pips or so. I want to wait and see how price behaves around that 1.3440/30 area since that area acted as such strong resistance previously. A break of that area I will be looking to short again. My overall target on this trade will be that cluster of support depicted on daily chart 1.3340/50 area (50% fib level, 21 and 50 SMA's).
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