EUR/USD: While 1.3000 offers itself as some formidable psychological support, 1.2885 represents the low from April 2009, so we look for a test of the 1.2885-1.3000 area over the coming days. Also coming in by 1.3000 is a key 78.6% fib retrace off of the major 2008-2009 move. Look for any inter-day rallies to now be well capped ahead of 1.3400, while ultimately, only a break back above 1.3815 gives reason for pause. Monday’s bearish outside day price action helps to reaffirm negative outlook.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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