NEW YORK (TheStreet) -- The euro/U.S. dollar downtrend continued last week as we can see in the daily chart below. Note that price broke down through 1.2500 key support level before ending Friday just off that level at 1.2521.
This week, we expect more downside price movement, and we will watch any retrace higher for price action sell signals to rejoin the downtrend.
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The Australian dollar/U.S. dollar showed rejection of key resistance near 0.8900 last week, and the market has stayed below that resistance level for the last four weeks on recent attempts to push above it. Last week, price formed a pin bar fakey combo sell signal after rejecting that 0.8900 resistance. This signal implies that price could continue to move lower this week and re-test the key support down near 0.8650.