EURUSD OUTLOOK FOR DECEMBER 2011

EURUSD’s fall from the 2011 high of 1.4939 remains active as ONLY a monthly open and higher close above 1.3831 will complete the fall at the October 2011 low of 1.3145. As to the medium term outlook, ONLY a monthly open and higher close above 1.4042 will turn the outlook neutral to slightly bid. However, medium term and long term risk remains to the downside with a monthly open and lower close below 1.3407 favoring further downside extension targeting 1.3046, 1.2599,  1.1876 (2010 low), 1.1153, 1.0705, 1.0344 and .9983 into the months ahead.  For the month ahead, look for daily price to open and close below 1.3145 to witness further downside extension targeting 1.2885, 1.2724, 1.2594 and 1.2465 into the weeks ahead.