Chart of the day: Euro takes another beating

The euro suffered its third consecutive plunge against the US dollar following the previous five cautious declines that started in mid-July. The rule of eight suggests that after eight to 10 consecutive moves in one direction only, the move is mature and due for a correction. This view is backed by the fact that the euro is oversold on all time frames. Futures volume on Thursday was far higher than usual (suggesting a certain amount of euphoria) and open interest was at its highest since June 2012 (hinting at new speculative positions). Key support lies at around 1.28 - near previous lows and the Fibonacci retracement - so look for signs of basing into this level.