After pushing through the R1 point today, the EUR/USD eases and heads south to rest right on the pivot now.
Generally, the pair is still making lower highs.Notice how the small chart above is dominated by red daily candles.
If the notion of lower lows we discussed previously still holds, we may be looking at a bearish day tomorrow.
Having said so, it is the end of the week and the pair has been known to do unexpected stuff at the end of the week.
Oil has been diving since it's rejection at $75.The discovery of a huge oil field by BP as mentioned should not serve to affect much now as the operations are many years away.
Remember markets seldom go in a straight direction including oil.
S & P 500 has attempted to reach the 1000 mark but has failed again.Employment is down and the crisis is far from over.
My take is with increasing negative sentiments, the demand for safe asserts such as the US 10 year treasury notes will increase, bringing up demand for the USD.
The yield is currently around 3.30, lower than the days before.
In view of a continuation of all these conditions, the EUR/USD may be dragged further down.
However, 1.42 may be a tough nut to crack and one can expect support at that level.
Once again, tomorrow is the end of the week and we should factor in the possibility of the need to exit bad trades should the need arises.
Trade safe.
