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Forex Analysis: EUR/USD Extends Decline towards 1.3000 and Lower


June 21, 2013 – EUR/USD (daily chart) has extended its three-day decline by dropping to major support around the 1.3150 price region. This drop occurs on marked U.S. dollar strength this week that saw the pair end a steep bullish run and establish an intermediate top just above 1.3400-area resistance mid-week before turning sharply to the downside. Momentum on this sharp downturn continues to be strongly bearish after three substantial down days, and is not showing any signs of relenting. A continuation of downside momentum moving forward into next week could see EUR/USD target its major support/resistance pivot level at the 1.3000 figure, a breakdown below which could move towards key 1.2800 support and then a potential resumption of the bearish trend that has been in place since early February.

James Chen, CMT
Chief Technical Strategist
City Index Group


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James Chen

James Chen

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.