Selling EUR? Not so fast..

There is a potential red channel for EURUSD coming up soon. It needs a "touch and go" to confirm. Considering that the currency is quite oversold, the chances that the market will regard this as a legitimate channel is high. If not, well there is not a bottom to this hole really.

On the dollar index, a channel doesn't get any better than this. Please note that this is on logarithmic scale. The middle band plays as support and resistance on several occasions and it may do the same again which is in parallel with EUR upward move. We will see. Hope it helps..