Euro continues its descent searching for support - chart update

It's been a long time that I've been looking for the euro to descend further into a lower support zone. Maybe I should have expected the longer time frame for what I thought would be a large "B" wave. At any rate, i gained renewed hope on the trade when Raymond Merriman mentioned his bearish forecast for the euro in his 2010 forecast. And finally it's sinking lower! On my old monthly chart, it's dropped under the channel trendline I mentioned in my most recent prior post about euro, and is getting closer to the 121.40 level that's a 50% pullback. Lower to the 61.8% pullback would be about 112, which looks possible although cannot be guaranteed.

I'm thinking to look for a test of the 121.40, perhaps dipping under that for a day and then look for a turn back up if that 50% proves enough to reverse trend back up. However, if it tries that but then fails support with another new low under there, then it might need to test 112. Normally it would take a number if days for all this. With opex approaching on Friday, maybe we'll see some interesting action over the coming week! I'll attach more meaning to it if it includes a test of 121.40 in the $XEU chart (which the ETF called FXE tracks quite closely).

My whole viewpoint here is that the euro is working out a large pullback, and not merely downtrending permanently. Still - even if it IS in a permanent downtrend, these Fibonacci levels should provide levels for traders to consider.