EUR/USD has just broken through the bottom it’s recent support line (noted in BLUE on the below image). The start of that support is the same level (1.3780 – 1.3800) as we say as a launching pad for EUR/USD back in late May (see BLUE circle on below image.) We suspect that the pair will re-test those levels by Tuesday of next week.
Importantly, if the 1.3780 level is breached and holds below that for day or so, we suspect that we will see a slow move down towards the 1.3600 level which is the midpoint of a previous range seen in mid-May.
Stay Nimble!
Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com
Thanks to FX Solutions and Accucharts for the below image.
