EUR/USD continues bearish bias towards two-year lows
James Chen December 2, 2014 4:06 PM
<p>EUR/USD (daily chart shown below) continues to carry a bearish bias towards the two-year lows around the 1.2350-60 support area that was first established in […]</p>
EUR/USD (daily chart shown below) continues to carry a bearish bias towards the two-year lows around the 1.2350-60 support area that was first established in early November and then re-tested just last week.
Currently in consolidation near those lows, EUR/USD has recently followed the steep descent of both the 50-day moving average as well as a key downtrend line extending back to mid-August. The longer-term downtrend began in May at the 1.4000-area high.
The past month has seen the currency pair form a triangle pattern consolidation with the noted 1.2350-60 multi-year lows providing the base for the triangle.
With any further downside momentum that breaks below this triangle base, which would confirm a continuation of the entrenched downtrend, the next major support target immediately to the downside resides around the 1.2300 level.
Any additional downside momentum below 1.2300 could prompt the currency pair to decline towards a re-test of the major low around 1.2040 that was hit in mid-2012.
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