FOREX: Will EUR/USD Head Lower to Test Key 1.2625 Level?

EUR/USD has mostly been a one-way trade since early July, moving from a US$ 1.36 handle lower to a 1.28 handle. The pair took out some key technical levels along the way including 1.3490, 1.3148, and 1.3017. Currently, the pair is orbiting the 1.2858 area, representing the 23.6% retracement of the 2008 High through the 2010 Low.

In this Daily chart below, we identify the 1.2625 level as a key downside price objective for EUR/USD. This levels represents a retracement extension level.

In this Weekly chart below, we identify 1.2502 as another key downside target for EUR/USD.  This level relates to the 2012 Low through the 2014 High.

Our YouTube video examines recent EUR/USD trading activity and projects downside targets.

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