On Friday the euro managed to overcome the weekly pivot level of 1.3212, when during the early European trading session it had broken the 1.32 level, recording the daily low 1.3164. At the moment it has low volume and is exhausted. It is likely to continue falling. We can consider this movement as an opportunity to sell this pair, provided that our trading below key level, 1.3308. So we recommend selling below 1.3262 with targets at the weekly pivot level 1.3212 and support nearest 1.3150. The technical indicator is showing overbought levels. It is likely that in the next few days there will be a strong retracement to the level of 1.3150. It faced significant resistance for the pair to break above, and it should now work as an important support.
If you need personal consultation, contact me via e-mail: gerardo.porras@analytics.instaforex.com
Fundamental Analysis for December 28, 2012, See here