EURUSD currency pair recently reversed down from the resistance area lying between the round resistance level 1.20000 (former strong support from May) and the 38.2% Fibonacci correction of the downward impulse from the middle of June. The downward reversal from this resistance area stopped the previous impulse wave (3). Given the worsening euro sentiment as seen across the FX markets today – EURUSD currency pair can be expected to fall further toward the next support level 1.18500 (which stopped the previous ABC wave (2)).
