EUR/USD Downside Targets
Let us look at the monthly chart for EUR/USD. This shows a very clean trendline that is supported by corrections in late 2005 and late 2008. Below that is the daily chart, which shows two more support lines, Line3 and Line1. Line3 is a horizontal support line at around 1.3750 – 1.3800. Line1 is the line that has supported EUR/USD in this rally from March lows. And finally Line2 is the longer term support time. We will definitely visit 1.3800, which will take us to SPX 900-910. Visit to Line1, around 1.3500 should take us to 880, and finally if we make a visit to the longer term line, Line2 (which is VERY UNLIKELY IMO), then we will get to 790-820.
