Last week’s signals switched to bearish and pointed to selling the rally at 1.2644. This was close to the high and confirmed with losses of 3 ½ Big Figs since Tuesday’s 1.2689 high. A sequence of higher weekly lows have been ended and prices are trading below their key daily average rates which is negative for sentiment. With no sign that the deterioration is ending the outlook for this week remains bearish and the call is to sell modestly on the open and then at 1.2488, Thursday’s Marabuzo line with a stop loss at 1.2606, the 200 day average rate. Targets are to 1.2260, the last 4 week Marabuzo line, 1.2163, the 4 week low and 1.2072, May’s base.