The Euro is back to a very critical point.

EURUSD neckline in a big head and shoulder formation on the 2 hr chart is at 1.3653.8. This neckline was broken Nov 9 but a retest of the neckline Nov 11 was positive and the euro rallied to a top at 1.3807.7. Today the euro is falling again and last 2 hr close was just 6 points above the neckline. It is very important to keep an eye on the euro because it tells a lot where the stock markets are heading.

The first neckline break 2 hr closing low was at 1.3495.8. A close below this point could trigger a dramatic drop in the euro.