EUR/USD bears have continued to push lower, after a recent warning from Moody’s which cited that it would review ratings for all European Union countries. In price terms, bears need to break near-term support at 1.3212 (25th Nov low) and 1.3146 (Oct swing low). We have opened a sell trade setup favouring extended downside scope. Our cycle analysis suggests increased volatility over the next two weeks across “risk” proxies, including the equity and commodity markets. A close beneath 1.3146 will re-establish the larger downtrend from April and target 1.3000 (psychological level), then 1.2870 (2011 major low).  ... (full story)