FX.co ★ EUR/USD Sell Bellow 1.3160 for January 8, 2013 (Daily Strategy)

Yesterday the EUR/USD pair managed to recover to the level of weekly pivot of 1.3119. This morning the pair is trading below this level, it is likely to continue the downward trend, however. It is clear that the level of 1.3160 is a strong resistance now,whereas it was a support a few days ago. The fact that it has broken increases the probability of a bearish sequence. On the other hand, if the euro manages to rise and close above this level, it will be a sign that it will go up to 1.33, maybe to 1.35. We can see that there is much resistance all the way from the level of 1.3150 up to 1.33, so we must be cautious, we will be bearish below 1.3160. You can sell at any level below the dynamic resistance with objectives to moving average of 50 periods or to the psychological level of 1.30.

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