Here is latest EUR/USD chart. Here instead of channels, we show only major resistance and major support - red lines. It's a triangle. There is also the broken short term support - blue line.

From now there EUR should decline. There are two possibilities we see,

• EUR will decline to blue line, and the line will act as support. Then the EUR will consolidate a bit, and will break the upper red line. Time frame - next week.


• EUR will decline, the blue line will be broken, and decline will be till 1.2950-1.2960. From there will consolidate up-down, and finaly, will broke the upper red line. Time frame - 2-3 weeks.

Once the triangle is broken, EUR will raise to ~1.3280 - top from JAN.2007 and then to ~1.3350 - top from DEC.2006.

p.s. There are cup and handle pattern forming recently. Current we have just the cup, but as we think, price will go down and will form the handle: