EUR/USD declines to hit close to one-year low

<p>EUR/USD (daily chart shown below) has declined even further to hit close to a one-year low of 1.3118, just slightly above its downside support target […]</p>

EUR/USD (daily chart shown below) has declined even further to hit close to a one-year low of 1.3118, just slightly above its downside support target of 1.3100. Not since early September of 2013, when it formed a bottom around 1.3100 after a significant drop, has the currency pair fallen to such depths.

After a steep decline for the past two months within a broader decline from May’s 1.3993 high, EUR/USD continues to carry an exceptionally strong bearish bias.

Having also dropped down to a key support trend line extending back to late 2012, the entrenched bearish trend is not showing any signs of abating. Major moving averages, including the 50-day and 200-day, continue to point sharply to the downside.

 

2014-09-01-EURUSD
In the event of a breakdown below 1.3100 support, the extremely bearish trend will have confirmed its continuation with the next downside support target residing around the 1.3000 figure, a key psychological support level.

Any upside rebound should tentatively be limited by the 1.3220-1.3230 intermediate resistance area.

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