EUR/USD: Eyeing 1.2880 now

by Admin

The EUR/USD finally left its range today on worse than expected European PMI’s, breaking below 1.3000 and extending to 1.2970, where the 23.6% retracement of its latest daily fall offered short term support. Now, some consolidation in between those levels is to be expected, ahead of a new leg lower on the break of the first. As said yesterday, the H&S figure is not the neatest, but is there and the neckline around 1.3000 should now act as resistance. A break below the daily low will expose next support area, around 1.2920/30 while once below this last, 1.2880 is next.

A recovery above 1.3000 will deny the figure and see the pair attempting a recovery towards the 1.3040/70 price zone.

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