EURUSD - Showing further potential bearishness risk.

Not quite so sure of where we head on all this Risk-on/Risk-off at the moment. Last week we seemed to bounce off a key support area, only then to finish appallingly on Friday.

One area of interest in particular is the EURUSD which may point the way ahead.  I've attached a chart which shows a strong similarity between recent price action and the behaviour of price action in late 2010. This suggests a risk of a move towards further lows to the mid 1.3000s. - One major difference however is that in late 2010, the EURUSD was languishing below the line connecting the 2008 and 2009 peaks, whereas recently it broke above this key resistance and despite a minor break, this may exert a supportive influence. - I guess we will see how this progresses in the next 24/48 hours of trading.

- Post Script.

The above comments were penned pre- Sunday night opening. Since then the EURUSD has fallen a further 100 ticks...- I can not help thinking that the bounce in risk assets, was nothing more then a mere bouncette, and I am switching back to the bearish camp. - This seems to suggest, as I said above that we are heading mid 1.30s in EURUSD (At least), and I fear SP500 can move towards mid 1200s (Barring a surprise recovery from here over the next 48 hours. AUDUSD and other risky assets would also appear to be highly vulnerable.