Euro Week 2 Jan 18 2009

• Our dead cat bounce from last Friday appeared to show it self this week.  The Eurozone and UK are reeling from horrible banking news, specifically RBS of Scotland.
• The pressure on most European currencies continues.  AO has navigated the shorts well, and we'll cover when the we see the first color change. 
• Pay particular attention by the failed bounce confirmed with the up fractal, and the confirmations of AO. 
• There could be continued pressure on the Eur for the rest of this week. My concern is the momentum of the drop.
• Some correction is due, unlike last week, I will not hesitate to take some lots off the table. We recovered a large part of last years bad trades and we're off to a terrific start for 2009.
• Updated: covered a very small short position late afternoon, but reentered with similar size, so new entry is currently profitting.
• We've clearly popped through the 1.3000 handle finally with authority, 1.2900 is out and we expect some further drop this week if the miserable banking news continues.
• I would expect significant consolidation approaching 1.2500's and if this pans out, I'll unwind a good amount of positions, right now it's bad news, and great momentum, and we're on course.