The EUR/USD pair has bearishly broken out of its sideways consolidation, moving down to an initial first target at 1.3290, situated at a previous support and resistance level. The exchange rate will probably fall further, reaching the next target at 1.3270, where the S1 monthly pivot is situated and which is the 61.8% extension of the height of the triangle, a usual minimum objective for breakouts.
Today sees the release of the Fed's August meeting minutes and these could provide the impetus for a further move lower. A renewed break below the 1.3284 day's lows would probably confirm a move down to the pivot at 1.3270, although it only offers 14 pips of profit before costs. RSI is oversold on 4-hr, daily and weekly charts so caution is required, although there are no signs of bullish convergence or a reversal either, so the bearish trend remains intact.
A clear break below the pivot could be confirmed by a move below1.3250, with a target then at the 100% extrapolation of the triangle's height at 1.3220.
