MP FOREX ADVISORY

The main story in the forex market this week is centered on the EUR/USD, which continues its steep decline as it crashes towards parity with the US Dollar.  On Friday, after two weeks of consolidation, the EUR/USD broke the significant support level around 1.2143 and continued downward to close below the psychological support of 1.2000.  The next major support level is around 1.1640, which was the low that was posted in November 2005.  We believe that this continuation of the downtrend will open the way for some excellent trading opportunities in the Euro pairs over the coming weeks.  While an eventual reversal is inevitable, at this point it does not appear that the downtrend will be ending any time soon.   

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