EURUSD breaks below 1.3889 key support and reaches as low as 1.3876 level, suggesting that the pair is now in short term downtrend from 1.4197. The price action in the trading range between 1.3876 and 1.4027 is treated as consolidation of downtrend. As long as 1.4027 resistance holds, we’d expect downtrend to resumed, and deeper decline is expected to re-test 1.3748 previous low support. However, a break above 1.4027 resistance will indicate lengthier correction of downtrend is underway, then further rebound could be seen to 1.4100-1.4150 area.
