EUR/USD (daily chart) as of April 4, 2013 has hit a new 4-month low at 1.2744, dropping slightly below its prior low of 1.2750 that was hit just last week. After that low was hit, price rebounded on an intraday basis back up to the tentative 1.2880-area resistance thus far. The new low hinted at a potential continuation of the entrenched bearish trend that has been in place since the early February high around the 1.3700 handle. The medium-term downtrend has seen little in the way of significant upside corrections, as the euro has continued to be weighed down substantially for the past two months.
Having reached its downside target of 1.2800 last week, and then consolidating around this target level since then, in the event of continued bearish pressure after the rebound, price could move towards further downside objectives around the 1.2650 and then 1.2450 support zones. Major upside resistance continues to reside around the key 1.3000 level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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