Lets look back.. way back to 2004 when the Euro Dollar started showing signs of strength inside a booming economy. The currency became heavily overbought, right around 1.37690, and then fell for about two years until it finally found support at the 38.2 (Trend continuation confirmation level/zone) at 1.16260, and continued to rally up for the next two years where it seemed to reach its economic peak. Of course, it then became overbought and pretty much every institution, trader, bank, and hedge fund started selling and driving the currency down at an alarming rate, undoing years of financial strength in just a few short months..
Now, lets fast forward and bypass all the meandering momentum seen from 2008-2014.. Back in May of 2014, the currency all of a sudden stopped attempting to make those newer highs, and has since been dropping now for an entire year, up until the last two months..
Moving forward, and using our understanding of zones and fibonacci, the currency dropped and hit our first downside target at -27 (1.07929), kept dropping, retraced, and opened up the month of April retesting the support, and heading back up to load up on more sellers because the buying pressure is entirely too strong right now in order to move lower to our final downside target at -61.8, or just at 0.94000.. Even though the odds of the currency falling below 1.00000 is highly unlikely, we might just see that happen in the next few months.. However, we can expect the currency to continue to move up to 1.15 - 1.16 for the next few weeks, or even a month or two. The more time held at those prices without an indication of continuing to rise, we'll be looking at prices coming back down with the same if not greater sell pressure they've been having for the last year