The EUR/USD has been consolidating. I think in part due to the fact everyone is trying to figure out if we are in a bear market rally or not. Thursday and Friday were low volume across the board as Friday was a holiday. The EUR/USD did not quite touch the -23.6% on Friday from the move down on Thursday but precisely hit previous S/R at price level 3 seen on the chart. It’s also worth noting that we bounced of 200 EMA on Thursday. We will likely trade up into area indicated by yellow oval on chart (50% retrace from Thursday). Above this we have a strong S/R level indicated by price level 2 and also the 200 EMA.

I expect that there will be continued overall pressure downward on the EUR due to all of the comments that came out of ECB last week about quantities easing. Essentially, this not much more than printing and injecting cash.