EUR/USD Update: After approaching the 1.28738 January 2011 support level on 12/18, EUR/USD just about hit that level tonight. EUR/USD broke 1.29 and hit a low of 1.28877 before bouncing to 1.29200. You can see that EUR/USD is still in a steep downtrend, as it has been since Oct (or really May). BUT, if the Euro can base out here and rip through that trend line, it could re-test the 10/4 low 1.31460, like it tried a few days ago before bear flagging around trend resistance and breaking down. It could then rally on up to that next downtrend line that hits around 1.36-1.38 in early 2012. It depends on the eurozone sovereign debt catalyst, or ECB/Fed actions if positive for the euro. If not, bye bye to 1.25-1.18. In another post I'm going to embed videos with analysts and a hedge fund manager that believe the Euro is going lower, or possibly to parity. Click the chart for a larger view.