A look at the long-term monthly chart for the euro (priced in US dollars, EURUSD) shows as clear a bearish key reversal as you will dry in any market. Early in September the EURUS posted a new major high of 1.2001 before falling below the August low of 1.1697 and closing at 1.1720, down 0.0215 for the month. You might also recall, in my analysis of reversal patterns the strongest of those I look for is the key reversal (the others being the 2-month, spike, or new 4-month high or low). And if a key reversal happens to occur in conjunction with a crossover by monthly stochastics in overbought or oversold territory, I feel confident in taking that pattern to the bank. It is only on this last count the euro comes up a bit short of turning into a strong bear: It slipped far enough late in the month that stochasitcs were pulled below the overbought level of 80% when September came to a close. Does this change my mind about the direction of the EURUSD? No. I see a clear major downtrend with targets of 1.1485, 1.1323, and 1.1161. However, the EURUSD could look to consolidate during October, just enough to pull stochastics above 80%. Stay tuned.