July 03, 2013 – EUR/USD (daily chart) has tentatively stalled and fluctuated after having just made a significant breakdown below the major prior support level at 1.3000. This breakdown has been the culmination of two weeks of substantial bearishness that brought price down from its intermediate highs just above 1.3400 down to today’s low well below 1.3000. Having just broken down below this major support barrier, the currency pair has made a strong bearish stance. If price is able to stay below 1.3000, further downside should target the 1.2800 support objective in the short-term. A further breakdown below 1.2800 would confirm the strong bearish trend bias for the pair, and could prompt a move towards downside targets around 1.2650 and then 1.2300.
James Chen, CMT
Chief Technical Strategist
City Index Group
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