The euro/dollar chart has two significant features. When combined, these two features confirm the long-term downside target of $1.00 to $1.01 for the euro.
The first feature is the upsloping triangle pattern. This is usually a bullish pattern but with the euro/dollar the pattern collapsed. A breakout of the upside of this bullish pattern did not develop. The breakout was to the downside.
The chart pattern is used to calculate the downside target. This is a measured move target. The target is calculated by measuring the height of the base of the triangle – 0.10 – and projecting this downwards from the point of the breakout below the trend line near $1.11. This gives a downside target near $1.01. Historical support is near $1.00.
The recent rally from near $1.05 remains part of the strong downtrend move towards the $1.00 support target.