The Euro plummeted through 1.3000 yesterday reaching 2-week low levels at 1.2825, confirming a top at 1.3335, and, according to Karen Jones, technical analyst at Commerzbank, setting focus to lower levels, with 1.2732 and 1.2673 as next targets.
Once confirmed a top at 1.3335, the pair has turned lower, targeting 1.2700 area on the short-term, says Jones: "EUR/USD so far dropped to 1.2829 which confirms that a top is indeed in place. The July 21st low at 1.2732, the May 21st 1.2673 high and the June-to-August uptrend line at 1.2701 are the next lower targets."
On the upside, Jones points out to 1.3031 and 1.3095/3126 resistance levels: "Since previous support, because of inverse polarity, becomes resistance, the mid-July 1.3031 high and next higher 1.3095/1.3126 zone is just that. The latter comprises the May 10 high and the 38.2% Fibonacci retracement of the 2009-2010 downtrend."