Looking at the EURUSD weekly chart, we can see the extension of the downward trend as the Euro depreciates even further. On the 19th it fell from 1.135 to 1.126, bounced back to 1.132 but it gradually started to slip lower and lower, forming support at 1.123. A breakdown from the support level of 1.123 happened on the 24Th plunging further down to the 1.12 range, temporarily forming support. It is currently trading on the 1.122 price range, right above the temporary support level of 1.12 and with 1.125 as the closest resistance level.
Today we could expect an extension of the downward price action and a fall below the 1.12 support level as negative momentum is at play.
If however, it does manage to hold its current level then a case for a move towards the 1.125 closest resistance level can be expected.
(Click on image to enlarge)
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