EURUSD – Euro/dollar continues to weaken after gap down

The EURUSD opened this week with a large gap down of over 160 pips, this came on the back of some news over the weekend regarding Cyprus debt problems and how it might affect the euro-zone economy. Regardless of why the gap formed, the important thing to note is that the EURUSD downtrend is still intact and this market is looking increasingly weak lately. Note that the market did try to fill the week-opening gap but only managed to fill it about 50% of the way before reversing lower again. As of this writing, into the early-Asian trading session, the market is already threatening to break below key support near 1.2875 again, and if this bearish momentum continues we could see a larger move lower. The next key support is not seen until about 1.2660, traders can continue to watch for price action signals to sell and trade in-line with the downtrend in this market.

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