The EURUSD has been able to stay below the resistance against the 1.2438 area on the correction this morning (SEE: “Forex Technical Trading: EURUSD tumbles on Draghi and breaks of technical levels” ), and is down testing the next key support at the 1.2394 level.
EURUSD moves to the 1.2394 support area.
The bears remain in control. It is Friday, but I will refrain from saying “there can be weekend position squaring” today (although I just said it…; ) ).
The shorts are likely to be feeling ok with the move today from a technical and fundamental perspective, and it is hard to see any “news” over the weekend that might derail that thought for the EUR for the USD. So let the trend down continue. The 1.2438 area remains topside resistance.
Looking longer term, the 1.2329 is the low price from 2008, and on a break of the 2014 low at 1.2357, is the next target on the downside. After that, the 1.2131 is the 50% of the move up from the EURUSD post 1999 low to the 2008 high. Key target. I would expect this level to find good support on a test.
The 2013 low was at 1.2041. The 2010 low is 1.18767. This is the post crisis low price for the EURUSD. Finally, the common currency was initially pegged at 1.1743 back in January 1999. Since 2003, the price of the EURUSD has not had a closing month below that level. Just food for thought. Obviously, as the pair goes lower and lower, it becomes harder and harder. However, if the fundamentals support the moves, they are not out of reach going forward.
EURUSD step by step targets.
