EUR USD consolidates declines below 1 3000

EUR/USD (daily chart shown below) has consolidated its recent steep declines after rebounding from its new 14-month low of 1.2858 that was hit just last week.

The rebound from that low rose on Tuesday to hit a high just short of the key 1.3000 psychological resistance level, before tentatively failing to extend its upside push.

The past two weeks have seen an especially steep decline that broke down below major support levels at 1.3100 and 1.3000. This decline substantially extended the strong bearish trend that has been in place since the 1.3993 multi-year high in early May.

Currently, in somewhat of a consolidation pattern below 1.3000, the currency pair could reach down towards lower lows if it manages to continue trading below 1.3000, thereby continuing the entrenched bearish trend.

In the event of this bearish continuation, the clear downside support target resides around the 1.2750 level, which was where the currency pair formed a major double-bottoming formation in March/April and July of 2013.

Any further rebound back above 1.3000 resistance should be limited to the upside by the noted 1.3100 level, a major support/resistance price area.

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