FXstreet.com (Barcelona) – The EUR/USD extends further to the downside, breaking past support most recently and reaching a fresh 14-week low just above 1.2900. The pair seems to have found traction there however, and is currently lingering around 1.2920 where it attempts to hold the line ahead of the week’s close.
James Chen of FX Solutions wrote earlier: “Having dropped to the current lows, price action is on the verge of breaking down below the consolidative trading range that has characterized this pair since the beginning of December. Although EUR/USD is finding some general support at the current lows, the overall directional bias continues to be to the downside.”
Chen adds: “Further downside momentum on this week’s marked bearishness could soon potentially target key downside in the 1.2600 price region, which would confirm a continuation of the bearish trend initiated from the early November 1.4280 high.”