EUR/USD found the top near 1.6000 where a selloff begun. While moving lower, EUR/USD broke below the uptrend channel suggesting the continuation of the decline.
The Fibonacci applied to the channel breakout point shows that the rate failed to test any of the downside support levels while today it rejected the channel breakout point - R1 (1.1335). The Fibonacci applied to the first corrective wave after the channel breakout shows that the 261.8% retracement corresponds to the 23.6% level of the channel breakout Fibs. In addition the downtrend trend line was also rejected today.
Consider selling EUR/USD at the current rate (1.1315) targeting S2 (1.1185) support level or even lower - S3 (1.1050). The stop loss should be just above R2 (1.4000).
Support: 1.1270, 1.1185, 1.1050
Resistance: 1.1335, 1.4000
