EUR/USD at critical support levels, next support could be 1.25

The EUR/USD is at a point forex traders will want to watch very closely this week, both on the daily chart and the hourly chart.

The chart below shows the daily chart for the last six months or so, and we see that the pair has been consolidating inside this descending triangle, a typical consolidation pattern. (Learn more about Continuation Patterns here.)

As I write, the pair has reached an important point in our Fibonacci retracement study as well. We're right at the 23.6% level, where we'll want to watch closely to see if we get a bounce, or a break through. A bounce means we're likely headed back up toward resistance around 1.36, but a break through support leaves support at our previous recent low in the 1.25 range.



While that's a look at the daily chart, a move to the hourly chart shows similar support levels at a crossroads. In the chart below we can see two different trends, in two different time-frames (one a little longer-term), but both show the pair finding itself at support, solidifying our analysis from the daily chart.



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