It seems that the third bounce off from the long term resistance did the trick. The common European currency has declined against the US Dollar to the weekly S1, which is located at the 1.1148 level. This fall was long expected on larger timeframe charts. It is most likely now that the currency exchange rate will continue on its path lower. In the process a new medium term pattern is expected to form, which should provide guidelines about the probable direction of the Euro against the Buck in the upcoming few months. However, for now the target zone is unclear. Meanwhile, from a technical perspective it can be observed that a depreciation of the Euro against the US Dollar is to be expected.
