EURUSD: The next long term target.

EURUSD has been on a strong downtrend since the 1.2556 February High. As we speculated on a previous study, it eventually formed a Channel Down on the 1W chart (RSI = 38.832, MACD = -0.014, Highs/Lows = -0.0056) that has only recently broken through the 1.1300 Support. The 1W chart displays that this Channel Down is on a mirror symmetry with the one that took the price on a 1 year bullish streak from the January 2017 low (1.0342) to the February 2018 high (1.2556).

The next long term target is the 1.0780 - 1.0825 zone, which is the largest weekly gap open on record (on 24 April 2017). After that the pair should trade sideways within 1.0825 and the 1.0342 1M Support. Although the 1M chart indicates that the pair is on a very long term Channel Down since the 2008 1.6039 High, the price hasn't traded below this Support line since January 2003, so any speculation beyond that point is pointless. That chart explains though why the rejection last February at 1.2556 took place (Lower High on the 1M Channel Down).



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