EUR/USD broke down out of its rising wedge yesterday and resumed its descent. It has since stopped to consolidate, and is forming a possible flag pattern. It will probably eventually breakout of the flag and descend more deeply, in another leg lower, perhaps targeting support from the 1.3295 lows. There is, however, further strong support at 1.3390 which could impede progress lower, although a decisive clearance – signalled by a move below 1.3370 perhaps would open the way down.
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