- Contrary to expectations, the Euro broke out from a symmetrical triangle in the downside direction.
- In the process, the currency rate managed to bypass the medium-term ascending channel’s bottom trend-line, the monthly PP and R1 and the weekly S1 and S2.
- Even though 70% of traders continue to remain on this currency pair, a number of technical indicators suggest that the 128.80 mark represents a point, where the rate became oversold.
- Due to that, the Euro might restore some of the lost positions and surge towards the above weekly S1 at 129.45.
- However, this climb upstairs is expected to have a short-term effect, as majority of traders continue to hold short positions.
- Moreover, now the rate is located below the 55-, 100- and 200-hour SMAs , which will exercise additional pressure and compromise any attempts to clear a path to the top.
In line with expectations, the Euro used the monthly S1 at 128.80 as a trampoline to surge to the weekly S1 at 129.45. After reaching the above resistance line, the pair made an expected rebound and entered into a new eight hour downfall.
At the moment, it stuck between the weekly S2 at 128.58 and the above monthly S1. Given that 64% of traders remain bearish on this currency rate, the further depreciation of the Euro is expected to follow.
Later this day the pair might make a correction and get closer to the 55-hour SMA near 129.39, as it did yesterday. However, the general downtrend is expected to stay in force. In this context, the likely target for the end of the week most likely is going to be the March 2016 high at 128.18.