The EURO is showing signs of weakness against the US Dollar with another rejection of prices above 1.3300. Last week the pair reached a weekly descending trend line when it topped out at 1.3345 for the month of July and has remained between 1.3200 and 1.3300 ever since. Although the US Dollar is also showing signs of weakness with a possible Head & Shoulders pattern on the USD Index, the EURO is not exactly robust and falling below 1.3200 could bring a further decline to 1.3110 (Highs from Nov 2012 and April 2013), or even further. There is further support at 1.3000 and the 1.2850 area. To the top side we see 1.3350 as a major hurdle, followed closely by 1.3400. But, beyond 1.3400 there is a relatively free shot back towards 1.3650 and the 2013 high at 1.3710.
