EUR USD consolidates at major support

EUR/USD (daily chart) has consolidated just above a major support confluence around the 1.3150 region, which is currently at the same price location as the key 200-day moving average. This price action follows a substantial two-week drop from just above 1.3400 resistance, a level last reached prior to that in June.

Having dropped down to the strong 1.3150 support confluence, the currency pair is currently at a critical juncture. A continuation of the significant bearishness of the past two weeks could prompt a breakdown below this major support, targeting the key 1.3000 psychological support level to the downside. Any further breakdown below 1.3000 should then move the pair towards the important 1.2750 support level, site of the major double-bottom from April and July. Conversely, if the price turns back to the upside at or around the current 1.3150 support, strong upside resistance resides around the 1.3300 level.

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