EUR/USD has continued its move to the five-month low around 1.2623, forming a Channel Down pattern on the 4H chart. The formation has 56% quality and 86% magnitude in a 67-bar period.
The price recoiled from the support level at 1.2954, then recovered from 1.2681 and slowed near 1.2717 level. Short-term trend showing Alligator indicator gives sell signals, supporting the idea of a downtrend extension. SMA200 indicator started to decrease after the pair crossed it at 1.3197 level. If the pair rebounds from the resistance level at 1.2754, the initial target for short traders might be around 1.2680, where the local low of the price lies.
The RSI indicator moved deeply below 30% level during last few bars increasing the possibility of pair's recovery. The Stochastic indicator has soared to 79% value after it has breached its 20% critical level. Bullish traders might focus their attention to the resistance level around 1.2757. If the price breaks this level, the initial target for long investors might be around 1.2868, where the previous high resides.