The EUR/USD or the Fiber as what they call the pair in the street had broken down from a rectangle chart pattern when it fell below the 1.3000 support. As you can see from its 1-hour chart, it immediately achieved its downside target of 1.2500 following the breakdown. At present, the euro may be rallying again against the US dollar. While it may still have enough legs to move higher perhaps back to 1.3000, we believe that such up move may just be temporary given its overall downtrend. Note also that it may see some resistance at its previous support at 1.3000. Moreover, the 50% Fibonacci retracement level lines up perfectly with 1.3000, making it a tougher mark to break. Furthermore, a move towards that level may send its stochastics to an overbought condition. Given all of these, I’m going to place a short order at 1.3000 with a stop loss at 1.3040 and a target at 1.2925 as for my forex trading.