EUR/USD – The objective from the 1.4200-1.4600 consolidation break has now been reached, with the market ready dropping sharply to 1.3600's ahead of the latest minor bounce. While our core view continues to favor additional downside, short-term technical studies are now severely oversold and warrant a much needed and healthy corrective bounce. Inability to establish a close above the 10-Day SMA on Wednesday however, does keep the pressure on the downside. A break back above 1.4030 would be required to officially trigger a short-term correction.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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