As apparent on the chart, the pair bounced off the weekly PP today and fell sharply past the 100– and 200-hour SMAs near 1.6322. If the sentiment continues to dominate the market within the following hours, traders could see a breakout south from the senior channel and a subsequent price decline down to the monthly PP at 1.6174.
On the other hand, the Euro might try to regain some lost positions after today’s fall and thus find support at the weekly S1 and the senior channel circa 1.6250. Upside potential in this scenario could be the 1.6443 mark. The rate’s subsequent movement should nevertheless be south.