EUR/USD (daily chart) has extended its three-day decline by dropping to major support around the 1.3150 price region. This drop occurs on marked US dollar strength this week that saw the pair end a steep bullish run and establish an intermediate top just above 1.3400-area resistance mid-week before turning sharply to the downside.
Bearish Momentum
Momentum on this sharp downturn continues to be strongly bearish after three substantial down days, and is not showing any signs of relenting. A continuation of downside momentum moving forward into next week could see EUR/USD target its major support/resistance pivot level at the 1.3000 figure, a breakdown below which could move toward key 1.2800 support and then a potential resumption of the bearish trend that has been in place since early February.
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