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
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