EURUSD—still weak

The low so far this morning is 1.2980 which is more than 50% retracement of the move up from the June low. A .618 of this would be 1.2795. Because that's near a round number of 1.28, is an internal 45° degree support line on my point and figure chart, and a price target from other calculations, it seems probable it can make it. I have targets that go much deeper but there's not a lot of sense in talking about them at this point since no pair follows a straight line down (or up). That said, I have to say that one of the more meaningless statements I read by an analyst this morning was that the Euro had traded at this level many times before. Clearly a perma-bull who thinks this weakness is just temporary. But it's worth noting that the Euro is very oversold and, as I wrote yesterday, there's a cluster of support around the 1.30 price. A rally isn't out of the question. 1.3150 is the most likely resistance and I'd probably add to my short there. I did take partial profits at +580 pips. Only above
1.3317 would I expect to see a potential move back to the 1.35 area. I don't think that's likely.

Here's the daily chart:












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