Euro Remains Under Pressure
EUR/USD remains under pressure after its recent sharp decline beneath the key level at 1.3436 (50% Fib Oct/Jan decline).
Only a confirmation back above 1.3436/60 unlocks an extended recovery into our target zones at 1.3630 and 1.3706 (200-day average).
Meanwhile, the bears need to close decisively below 1.3160 and 1.3000 (psychological support), in order to open further downside risk.
Inversely, the USD Index is holding steady after the recent rebound from key support at 78.25.
Expect this level to act as one of the last points of defence for a potential re-launch of the greenback's recovery which is still part of our bullish cycle strategy for a further 20% gain over the multi-month period.