Chandler points that while both upside corrections unfolded in a three-leg sequence, which is common for counter-trend moves, "the correction is over and the dollar's underlying uptrend is resuming" Chandler said.
Chandler highlights the risk of near-term consolidation, however, he expects the EUR/USD to make new lows for the year.
Technically, Chandler sees a potential recovery in the euro "likely capped in the $1.3220-60 range, while sterling's bounce will likely be limited by the $1.5500-50 area."
On the downside, "the next target for the euro is $1.3060 and then $1.2975" Chandler adds. Going forward, Chandler finds $1.2850 - trend line off the early April and mid-May lows - at the end of next week an achievable goal.