How far EUR/USD may fall?

May 28, 2014 in Chart Alert

The near-term bearish sentiment had become stronger for EUR/USD when the pair had broken below the previous support of 1.3443, after finding a good support 5 pips over that level once. The fact that the pair had fallen strongly, ahead of 1.4000 level can also not be missed. After touching 1.3993 and missing that important level just by 7 pips had given a strong suggestion that the currency pair is not yet ready for that landmark. Some of the points we will be touching in this alert were already covered in the weekly outlook of May 24th.

Let’s have a look on the daily chart with some observations:

EURUSD daily chart - break of recent range after the break of a major support.

As the above chart indicates, that the currency pair even broke below 1.3612 which was the low of the range during past 4 trading days. This break simply added fuels to the already existing bearish sentiments.

What can be expected?

Let’s have a look on the weekly chart:

EURUSD weekly chart - trend line and double top - possibilities to hit 1.3540 or more.

The above chart shows the break of the trend line support as well as the double-top pattern. These points were also covered in the above mentioned weekly update. With all the above facts combined and a break below 1.3612, further declines are fully expected as it also signified that the psychological fear of 1.3500 ranges is not so strong. The fall should extend, first towards 1.3540 and may even hit 1.3485.

Do check more at EUR/USD analysis and outlook page.

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