Currently trading @ 1.3873. I expected this to happen at the beginning of the trading week. Read STOP Trading!! about my setup for this week.
Quick recap; Last week the EUR/USD was clearly in my opinion in an overbought position.
However news that Ireland's credit rating has been reduced to a AA rating has fueled selling the Euro against the US dollar even more. Selling it too much too quickly brings any currency in oversold territory fast, and I think that's what's happing right here. This news came out of left field to me and was certainly not calculated in my analysis over the weekend. That almost makes me wonder if the Euro should've dropped even more or at least faster. Sure it's trading below 1.40 now, but the Euro may be coming out stronger by the end of the week. My overall charts (like the one above) still signal a bearish outlook for the EUR/USD pair, but use caution if trading this pair, if you have a already profitable entry point, hold on to it and watch movements closely. If new in this trade, don't even bother and wait for a better directed chart, which will likely happen tomorrow (US trade).