Euro Targets Psychological Level at 1.3000
EUR/USD remains under pressure after resuming its sharp decline beneath key level at 1.3436 (50% Fib Oct/Jan decline).
The bears need to close decisively below 1.3000 (psychological support), in order to open further downside risk into 1.2630 (16 Jan swing low).
Only a confirmation back above 1.3436/60 unlocks an extended recovery into our target zones at 1.3630 and 1.3694 (200-day average).
Inversely, the USD Index is extending its latest rebound from key support at 78.25.
Expect this level to act as one of the last points of defence for a relaunch of the greenback’s recovery which is still part of our bullish cycle strategy for a further 20% gain over the multi-month period.