The chart attached is a weekly chart of the EURO versus the USD starting in 2001.
Two things are worth keeping in view: 1) the time period from 2014 until now and 2) the lows of 2001 at 0.85 from where the market took a ride to 1.50/1.60 level.
Since 2008 price has been in a bear move (bearish for EUR) with a sequence of lower highs and lower lows with only exception being the low at around 1.20 during July 2012.
During April 2014 price began its latest impulse move to the downside which lasted about a year into March 2015 and, value wise, started at around the 1.39 level into the 1.05 level, a loss of about 0.34 or almost 25%.
From March 2015 onward, price started to develop a so-called 'ending diagonal' (ED) which is a typical continuation pattern. The rule of thumb in TA is that price usually breaks out of the downside of such an ED at 2/3rd to 3/4th of the ED (in case of a bear market). Price then usually drops further and retrieves back up to test the lower line of the diagonal. This has happend to the price during this week.
As per rule of thumb in TA one should now copy the descending price channel that led price into the diagonal and place that copied channel to start from the spot where price tested same line.
The result is that the price target is to be placed at around 0.85 where price should arrive in about one year from now.
This price level corresponds with the lows of 2001 which is a very logical target for price to hunt after various supportive levels have been broken on the way down.
Two things are worth keeping in view: 1) the time period from 2014 until now and 2) the lows of 2001 at 0.85 from where the market took a ride to 1.50/1.60 level.
Since 2008 price has been in a bear move (bearish for EUR) with a sequence of lower highs and lower lows with only exception being the low at around 1.20 during July 2012.
During April 2014 price began its latest impulse move to the downside which lasted about a year into March 2015 and, value wise, started at around the 1.39 level into the 1.05 level, a loss of about 0.34 or almost 25%.
From March 2015 onward, price started to develop a so-called 'ending diagonal' (ED) which is a typical continuation pattern. The rule of thumb in TA is that price usually breaks out of the downside of such an ED at 2/3rd to 3/4th of the ED (in case of a bear market). Price then usually drops further and retrieves back up to test the lower line of the diagonal. This has happend to the price during this week.
As per rule of thumb in TA one should now copy the descending price channel that led price into the diagonal and place that copied channel to start from the spot where price tested same line.
The result is that the price target is to be placed at around 0.85 where price should arrive in about one year from now.
This price level corresponds with the lows of 2001 which is a very logical target for price to hunt after various supportive levels have been broken on the way down.