Short-Term. Currently euro longs found a support at 1.2800-50 range, provided by the major trendline and triangle's lower boundary. A break in the support will most likely see the pair retest 1.2730, a 2005 low, with subsequent breakdown targeting the 1.2489, a 61.8 Fib of the 1.1760-1.3667 dollar rally. Indicators continue to signal range trading conditions. Stochastic is slopping downward toward the oversold line at 40.15. ATR is falling, pointing to a trend like swing. ADX(DMI) is below 25, with DI- crossing above the DI+, thus issuing a sell signal.
the failure by the euro longs to retest the triangle's upper boundary added to
the bearish overtones for the single currency. Currently the pair has reached a
critical point and given a proper catalyst will most likely break the
1.2730-1.2850 support zone, a major support created by the 2005 low, major
trendline and triangle's lower boundary. A breakdown will most likely see the
pair retest the 2004 summer range low at 1.2000