Since my post yesterday the EUR/USD pair has touched below 1.22. A decrease of 1 cent (or 100 pips). Although this was foreseen in my analysis yesterday with the recommendation to go even lower, I now advise caution. Due to shifts in fundamentals the pair may have found ground (support) this time. Short term stabilizing markets in the bigger picture made me change my position. I still believe the EU is economically fundamentally stronger then the US at this point despite all the recent negative news that arose from Europe. This strengthening will continue in the short run to 1.24/1.25 this week and next. When it comes to technical analysis, the sudden 'bounce back' as shown on the chart below was another reason for me to switch my 'sell' position to a 'buy' position for the upcoming week.
[caption id="attachment_615" align="aligncenter" width="534" caption="30 MIN EUR/USD chart, click chart for larger image"][/caption]