With sudden intraday fall of USD index, which definetly is not because EUR, we need to see how's JPY going on.

This time, we will begin the opposite way - from top to bottom.

1 day chart

Opps... we had just broke the support of current parallel channel...

1 week chart - das big picture.
Ok, we have no major support now, so the drop to 1.19.50 is imminent.

So JPY dragging the USD index down too. So we need to see how EUR/JPY doing.

***UPDATE***

EUR/JPY 1 day chart

We need to look at the chart as the ratio between EUR and JPY
(it is in fact this - how many JPY can buy 1 EUR).

So, here we have once again something similar to what we have in EUR/USD - an rising (bearish) wedge. We are about on the top, and some downtrend will come.

***UPDATE***

EUR Index weekly chart
First - Important note. The chart is from Stockcharts.com, and they are not quite realtime at the moment. We lost big money because of this before. So do not rely to the chart that much.

As we see EUR index chart (XEU), we have confirmation that we are not yet on the top of the wedge.

So probably we will see EUR/USD 1.38.50 after all.

Happy Trading :)

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In case you read it via link,
go to 12.JUL.2007 update here:
http://nmmmnu.blogspot.com/2007/07/quick-estimations.html