The euro extended the major (long-term) downtrend on its monthly chart during October, hitting a low of 1.15243. As I said last month, the target area between 1.14926 (50% retracement level) and 1.12905 (61.8% retracement level) should hold Wave C (third wave) of this 3-wave major downtrend. Monthly stochastics have worked back to the oversold level of 20%, though still look to be a number of months away from establishing a bullish crossover that would signal a new major uptrend is on the way. The euro posted a bearish outside range on its weekly chart last week indicating the currency should see continued selling this coming week.
