June 26, 2013 – EUR/USD (daily chart) has dropped down to key support around the major 1.3000 figure, establishing a new 3-week low for the currency pair. Today’s drop continues the dramatic decline that has been in place since price turned bearish after reaching up to 1.3400-area resistance one week ago. Having just reached down to 1.3000 on a sharp downside move, the pair is now at a critical price juncture. Continued bearish momentum could be expected as the pair trades below 1.3000, with a clear downside objective around the 1.2800 support area, last hit in mid-May. A subsequent move below 1.2800 would confirm a bearish continuation, with further downside objectives around 1.2650 and then 1.2450. Within the context of the current downtrend, strong upside resistance continues to reside around the 1.3150 area, to which the pair retraced back up and respected on Tuesday.
James Chen, CMT
Chief Technical Strategist
City Index Group
Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.
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