EUR/USD: The market has now broken back below key support at 1.3025 to suggest that the corrective rally in 2012 has come to an end and a fresh medium-term lower top is now in place by 1.3325. At this point, we would look for confirmation on a weekly close below 1.3025, and should we in fact get this close, we look for underlying bear trend resumption off of the 2008 record highs which should open a fresh downside extension towards the 1.2000 area over the coming weeks. The key level to watch below on a medium-term basis is the 2012 low by 1.2625, and it will be interesting to see if the market can gravitate back towards this level now that 1.3025 has been broken.
--- Written by Joel Kruger, Technical Currency Strategist
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