Continued bearish price action on EUR/USD, a daily chart of which is shown, has broken down cleanly below the rising wedge pattern (a bearish formation) as noted yesterday. This breakdown follows on the heels of price being rejected by key resistance in the 1.3800 price region, and indicates that the overall downtrend in the pair is still firmly intact. The current bearishness off the wedge could target further downside support in the key 1.3400 price region, a breakdown of which would confirm a downtrend continuation.

- James Chen, CTA, CMT

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