Euro/USD is Due for a Technical Correction after Weeks of Sell-Off
The overall sentiment for the Euro/USD remains bearish due to the continued deterioration in the Eurozone. The pair has had a very sharp downward move in recent weeks. The weekly chart illustrates the fierce move which began at the break of the 30.2 percent Fibonacci retracement support at 1.3116 extending the move through the long-term trendline support at 1.2770 as well as the 23.6 Fibonacci retracement support at 1.2637 in just a few weeks. Technically, this move is too sharp and I expect some type of consolidation and pull back to re-test the 1.2637 level and possibly 1.2800. Any positive development out of Europe may trigger this minor correction.
Shorter term resistance levels are at 1.2420 and 1.2480. Support levels are at 1.2320 and 1.2280.