This pair looks like it is forming a rare widening ending diagonal pattern. Prices may come down quite far from their current correction highs but it is probable that they will fall to near or beyond the recent lows. An initial target might be 1.5405, followed by the lows at 1.5375 and then perhaps even support at 1.5280. After that there should be a strong rally back up to at least the 50% retracement of the whole move down since the 6th August highs at 1.5690, if not as far as the 61.8% retracement at 1.5750.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst