FX.co ★ EUR/USD Strong Fractal 1.3170 for January 6, 2013 (Daily Strategy)

The Euro on Friday managed to find a strong support at the psychological level of 1.30 and closed the week at 1.3067, however, if you look at the graph of the fractal, 1.3170 was broken, so the pair quickly fell to the lowest level of the week, 1.2997. The euro-dollar pair managed to recover from this minimum level, it is likely that the previous support (1.3160/1.3170) should serve as resistance for the pair. It is likely to be a pullback to that level, and we believe that this will be an opportunity to sell the pair at resistance levels with targets at 1.2986 (daily Fractal) and 1.2798 (daily Fractal). Furthermore, at daily close above 1.32 we undo our bearish strategy. The technical indicator is showing a pullback and a continuation of the bearish sequence.

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