By: Colin Jessup
Yesterday I wrote about the EUR possibly falling to 1.2950 if we broke through weekly support at 1.3160 +/- and we fell as low as 1.3007. This is quite a free fall for the currency really, with a 2 day total of 219 pips. Now the question everyone will be asking is where its heading next. I am expecting price to possibly pull back to the previous support level and re-test resistance before falling again, possibly to the next weekly zone of 1.2900. If we don't see a pullback at this level, we can count on one at the 1.2900 almost definitely. The current price level of 1.3033 is also support going back to at least 2006. If 1.2900 is breached, lok for the next target area to be around 1.2580. If price turns bullish we can expect resistance at the previous support zone of 1.3160 and 1.3400 before trying its luck at 1.3650...but we have some ground to make up before that happens. I remain bearish on this pair for now.
Happy Trading!
