EUR/USD: Major Breakdown Underway: Levels & Targets
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It’s been nearly a year since EUR/USD was trading this low. Last December we had enough technical evidence to go against the grain. However this time it seems more likely that EUR/USD will break down. The break down through major support of 1.0450- 1.05 could be technically devastating for 2017 as it would signal a continuation of the decline since 2014.
Its clear EUR/USD kept its major technical support in the 1.0450-1.05 area based on the two year range before this week's breakdown.
Our daily chart shows a downtrend and a bear flag continuation flag forming that could lead to a sustained break.
This continuation pattern measures lower to 1.0275 and .9980 levels. A measured move based on the height of the Apr-Nov downtrend also suggests EUR/USD could move quite close to parity.
We see MACD rolling over negative and RSI has plenty of room to decline before reaching oversold.
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