Having traded through the 1.2738 Fibonacci retracement yesterday, Commerzbank analysts await a close below this level to signal that another leg lower is underway. “This is expected to be seen shortly following the recent break down from a symmetrical triangle. The triangle break down point is expected to offer resistance at 1.2881 and we would expect prices to be contained by the near term downtrend at 1.2938”, wrote analyst Karen Jones, pointing to a downside measured target to 1.2483 (from the triangle 1.3172-1.3103) and other one at .2472 (61.8% retracement), while supports are at 1.2738 then 1.2605 (38.2% and 50% retracements).
“It should be noted that the triangle took 6 weeks to complete and this target should be achieved by year end, however it is often done so much quicker in half the time”, Jones added, expecting the EUR/USD to reach 1.2483 by the end of this month.
source: fxstreet.com
