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A brutal selloff sent the EUR/USD to a 14-month low of 1.2920 last week. The pair closed below the 1.30 support for two days in a row, which signaled further downside could be anticipated in the near term. Next level to watch on the downside is 1.28, followed by 1.2750.

Short-lived bounces would probably be stopped by 1.30. A decisive break of the 1.3000-1.3050 would signal that the pair has entered into correction territory. Even in this case, a potential rally in EUR/USD should be used as an opportunity to sell. Any upside should be contained by the 1.3290 resistance, so it is a good idea for short-sellers to place their stops above that level.