FX.co ★ EUR/USD Rebound above 1.3103 - For January 3 , 2013 (Daily Strategy)

The euro quoted an opening gap on Wednesday, because traders reacted to news of an agreement on the "Fiscal cliff" in the U.S. Congress. As we mentioned yesterday, the pair was imminent that ought to cover this gap. This morning the currency was trading above the 1.3103 weekly support. For several days the pair has been trading in the range 1.31 to 1.33. Therefore, if the pair is trading above this level, we recommend buying with objectives to the weekly pivot. A close below 1.31 will be the start of a very strong bearish sequence that could pressure the euro to the level of 1.30 and further down to the key support level of 1.27.

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