Following a light volume NY session due to the national holiday, the EUR/USD continued lower with a full retracement of the October lows in sight. Downgrades to Spain’s and Greece’s debt ratings the last few days continues to point to the fact that the worst of the troubles in the European Union’s economy are still ahead of them and further easing will be necessary. Looking at our old EUR/USD 4-hour chart, the 1.23 target is ahead of us with little support in sight, whereas resistance to the upside looks plentiful. We will continue to track developments on the pair.