Euro breaks to downside – 1.175 target

As Cyprus boards the bailout bandwagon and another Eurozone summit beckons, the Euro continues its struggles against adversity and technically looks to be firmly rooted on the losing side versus a few other major currencies.

EUR/USD has been in a downtrend since breaking the neckline of the triangle pattern at 1.3000. June began well for the Euro with a bounce from the 1.2287 lows, but the short-term volatile pause against the prevailing trend has sketched out a classic flag pattern on the daily chart, resistance of 1.2623 proved too hard to hold and the flag support line finally broke last Thursday (see post)

As mentioned previously on Better Trader flag patterns represent a continuation of trend, in the case of the EUR/USD this is down. To get an idea of how much lower the Euro can fall against the dollar the target for this pattern is calculated to 1.1750.

Courtesy of www.bettertrader.co.uk, click here for link