EUR/USD: The latest downside pressures have intensified with the market easily accelerating below critical support at 1.3835 to mark a significant shift in the structure. A closer look at the monthly chart dating back to the record highs from 2008 shows a progressive decline with the market in the process of carving a series of lower tops and lower lows. The clear break below 1.3835 does a good job of reinforcing the potential for the carving of the next major lower top below 1.5000 and opens the door for a more meaningful decline towards 1.2000 over the coming weeks. In the interim, look for any rallies to be well capped below the previous support now turned resistance in the 1.3835-1.4000 area, while back under 1.3500 accelerates.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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