EURUSD is at a 13 month low. It is currently resting at the 50% fibonacci level. Analysis points out that a trend reversal at this stage is not likelyTh and continued declines at or below the 61.8% fibonacci level are expected. However, a short term blip at the current 50% level may occur before continuing the downward trend.
The downward trend is expected to continue as the has broken the key support line since previous 13 month low. The looks to continue to fall to the 30 line. The also highlights the support line which is a crucial test for the pair. If the currency pair breaks through the support line, it is likely that a test of the 100% fib line will occur.
Also interesting but not incredibly helpful, is that the pair has outlined a pattern, indicating that decline is likely foreseeable but doesn't provide much guidance to where it will land.
At this stage, conservative analysis points to a decline at the 61.8% fib level. This represents around a 240 pip/point profit trade with the take profit just before the 61.8% line. If the pair breaks the 61.8% line, expect a complete re-tracement.
This position is a medium to long term position with a time range between 3 to 9 months.
More updates on the EURUSD pair will follow in due course.
50% Fib had little hesitation before a continuation in the down trend, expect a sudden move to 61.8% Fib line in the next week or so.
USD denominated currencies will severely weaken especially GBPUSD and EURUSD given the EUR and GBP have relatively low interest rates and the burgeoning Brexit disaster is unquestionably going to drag it even lower.
This is a good one to trade on short term (1-2 weeks), as Brexit developments and the now hopelessly inefficient Italy crisis is pushing markets quite strongly.