EUR/USD Setback Targets 1.2624 (2012 low)
EUR/USD’s multi-month reversal pattern has extended its setback and, as anticipated, now targets 1.2624 (2012 swing low).
However, the slide is still very overstretched and due some temporary unwinding over the next few sessions.
Expect a potential oversold bounce into 1.2910/12 and 1.3000 (psychological level). Only a sustained move above here will help neutralize the extreme market condition.
Inversely, the USD Index recovery has rocketed much higher into key resistance at 81.78 (13th Jan swing high). The move is overbought and due a healthy unwind back into 80.73 (15th March high), then 79.82.
Expect these levels to hold and help re-launch the greenback’s recovery which is still part of the bullish cycle for a move above 81.78.