The EURUSD has broken below the 61.8% of the 2012 trading range at the 1.29525 level. This is now an upside resistance area. The price is also testing a channel trendline off the top downward trend line at 1.2939 (see chart below). The price has dipped below the line but momentum has slowed (with a low of 1.2929). Traders will be eyeing a correction to see if the price can get back above the broken1 1.29525 level. If it can, the bias may swing more to the upside on the disappointment.
If the price can keep the downside intact, the next target could see the price move toward the 1.2887 area (see chart below). Stocks opening up with Dow down around 120 and Nasdaq down 33.
