The Euro strengthened nearly 1% against the US dollar over the past day. For those who believe there is still more Euro weakness to come in the short-term, this may be a good opportunity to short on the pullback.
With that in mind, the charts below may help us get an idea of where we're at. First is a monthly chart:
click to enlarge
The daily chart below shows a downward trendline that may be provide a good opportunity to short from, as well as a previous Fibonacci level above 3300, if the market can pullback that far.
Fundamentally, many Euro bears put Portugal and Spain next on the debt crisis list. Of course, permabears such as myself cite Britain, Japan, and the US as candidates for the next sovereign debt crisis as well.
Disclosure: Short Euro, US dollar, British pound, Japanese yen.
