Bearish signal were flashing in the pair for the past few weeks ever since the pair printed the first bearish reversal signal (weekly chart) at the end of October 2009. The bearish reversal signal is now more or less confirmed with a break lower in the pair. with 1.4625 tested and tried to break lower, we now see a potential move lower in the pair. If the pair manages to break the 1.4625 level we might see 1.4447 being visited again.fundamental wise, option traders are reported to be betting on the strength of the dollar amid speculation that the fed will raise borrowing costs next year after a slew of good economic data being printed out recently. This had helped the dollar to gain some strength across the board as traders sees risk of carry trades being unwind if the fed will act on raising interest rates soon.
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