EURUSD OUTLOOK FOR February 2012

EURUSD’S fall from the 2011 high of 1.4939 remains active as ONLY a monthly open and higher close above 1.3243 will complete the fall from 1.4939 at the 2012 low of 1.2623.  For the month ahead, look to sell EURUSD within the 1.3243-1.3435 zone for further downside extension targeting 1.2918, 1.2805, 1.2623, 1.2441, 1.2329 and 1.2294.  As to the broad outlook, a monthly open and higher close above 1.3435 will turn the outlook to neutral, otherwise, significant downside risk remains. See the January 2012 forecast.