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EUR/USD - The Bleeding Continues

Just a quick follow up on the EUR/USD which we all know is in a free fall towards parity.

EUR/USD 4H Chart 3/11
(click to enlarge)

The 4H chart shows that it remains completely dominated by bears.

The monthly chart shows that parity is in sight. It is a psychological level and a common high in the second half of 2003. But why stop there? Yes I agree there will be some support there, but that does not mean EUR/USD will inevitably stop there. Consider an even further decline towards the 0.96 area, which is near a key support/resistance pivot in 2001 and 2002.

EUR/USD Monthly Chart 3/11
(click to enlarge)

Let's not try to catch a falling knife. EUR/USD has been falling for 9 straight months, and 11 out of the past 12 months. Even though the monthly RSI is in oversold territory, we should wait until there is at least a bullish month before even considering a possible bullish correction let alone a reversal. A bullish divergence in the monthly chart would be a good sign for a major consolidation/bullish correction ahead.