FXstreet.com (Barcelona) - The highs printed by both the EUR/USD and GBP/USD last week pre-FOMC are significant, as they mark the end of the correction off the year's lows, says Marc Chandler, Global Head of Currency Strategy at BBH.

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.