EUR/USD Classical 02.25
EUR/USD: The break below 1.3530 last Thursday now marks an end to the latest consolidation and opens a fresh downside extension that ultimately exposes a drop towards 1.3000 over the coming weeks. Next key support comes in just over 1.3400 (61.8% fib retrace of the 2008-2009 low-highs), and we look for a test of this level over the coming session. Daily studies are however looking stretched, so we would prefer to recommend looking to sell into rallies, rather than selling downside breaks. Aggressive players may even want to consider buying on a dip towards the 61.8% fib in anticipation of a correction.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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