June 12, 2014 – EUR/USD (daily chart) has dropped once again to revisit its four-month low at the major 1.3500 support level that was hit only one week ago. Within this past week, the currency pair had risen off 1.3500 in an attempt to recapture the 1.3700 handle and the 200-day moving average, but fell short after reaching a high of 1.3676. Now that price action has fallen back down on Thursday to retest 1.3500 once again, the prospects for EUR/USD appear increasingly bearish. Lending further to this bearish bias is the fact that the pair is trading well beneath its 200-day moving average, which has not been the case for nine months, since September 2013. Having just retested major support, EUR/USD is once again at a critical technical juncture. The 1.3500 support level also happens to be around the 38.2% Fibonacci retracement of the prior 10-month uptrend. At the moment, this could be considered simply a pullback within a bullish trend after reaching a two-and-a-half-year high of 1.3993 in early May. A strong break below 1.3500 support, however, could turn the current pullback into a potential bearish reversal. In this event, a near-term downside support target resides around the 1.3300 level, last hit in November 2013. With any major rebound and recovery from the current support, the key bullish objective remains at the noted 1.4000 level for a potential uptrend resumption. 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. 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. View All Post By James Chen Forex News Today: Daily Trading News share Read Next USD/CAD slides on optimistic BOC, USD weakness Yohay Elam 8 years June 12, 2014 - EUR/USD (daily chart) has dropped once again to revisit its four-month low at the major 1.3500 support level that was hit only one week ago. Within this past week, the currency pair had risen off 1.3500 in an attempt to recapture the 1.3700 handle and the 200-day moving average, but fell short after reaching a high of 1.3676. Now that price action has fallen back down on Thursday to retest 1.3500 once again, the prospects for EUR/USD appear increasingly bearish. Lending further to this bearish bias is the fact that the pair is trading well beneath… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.