Alan Collins notes that last week's decline was the third in the previous four weeks and, with prices hugging the lower end of both daily and weekly Keltner channels, his advice is to remain short.

Monday’s consolidation was followed by a renewal of selling interest yesterday which led EURUSD to the most negative levels traded for eight months.

To Alan Collins it is clear that the market is focusing on a key fifty percent correction point in the 2013-14 rise. This comes in at 1.3369 with important US data due out this week. Below 1.3369, the focus is on 1.3327 and 1.3295. Only above 1.3449 would this trade need to be postponed.