EUR/USD

The Euro has been pummeled during the week, as it looks like we are going to put a serious threat on the parity level. If we break down below the parity level, then the market is likely to go much lower, perhaps down to the 0.98 level. A short-term rally is possible, but I think the 1.03 level will offer a significant amount of resistance. Any rally at this point in time that shows signs of exhaustion will be an opportunity to start shorting and picking up “cheap US dollars.