EUR/USD: From here, next key support comes in by psychological barriers at 1.2000, with the market now trading in territory not seen since 2006. Below 1.2000 then exposes a drop into the platform base from 2006 in the 1.1600’s. It is however worth noting that technical studies, both daily and weekly, are now highly oversold and we can not rule out the potential for a meaningful corrective bounce before considering bearish resumption. Key short-term resistance comes in by 1.2575, with a break above to potentially trigger said correction.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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