EUR/USD – Further weakness anticipated

EUR/USD has met initial resistance close to our favoured region for shorts. In any case a higher low is sought in the current zone to complete the corrective phase from 1.2288.

A break under 1.2437 is initially required to weaken the outlook, but ultimately a push under 1.2288 is required to reignite 1.1650 as our next target.

Failure to hold under 1.2900, close to the 50% retrace of the 1.3486 – 1.2288 fall will suggest a more neutral stance is more appropriate.

Furthermore, the 81.50 level in the US Dollar Index has been met from where strong support is anticipated.