EUR/USD: Vulnerable to extend the downward trajectory

The EUR/USD pair on Friday fell below the 61.8% Fibonacci level of the recent corrective bounce and now seems vulnerable to extend the downward trajectory, according to FXStreet’s analyst Haresh Menghani.

Key quotes

“Sustained weakness below the 1.0785-75 region will reinforce the negative outlook and set the stage for a slide back towards the 1.0700 round-figure mark en-route yearly lows, around the 1.0635 region.”

“On the flip side, any attempted recovery now seems to confront some fresh supply near the 1.0890-1.0900 region (50% Fibo.), above which a bout of short-covering has the potential to lift the pair further towards 38.2% Fibo., around mid-1.0900s.”