FX.co ★ EUR/USD Intraday Technical Analysis & Trade Recommendation December 13, 2011

Yesterday, EUR/USD currency pair witnessed a strong bearish pressure breaking the support level 1.3270.

Now the pair is approaching the weekly support level 1.3150 which is very important in determination of the next pair's destination.

Break of 1.3150 opens the way for the pair to visit 1.2875 then 1.2500 enhanced with the bad news from Europe.

It's important to note that the mid-term direction is bearish targetting 1.28 then 1.2570-1.2600.

Broken support level 1.3270 is marked on the chart, now acting as resistance if visited today.

Now the pair is having difficulty approaching 1.3150 as the downside decline stopped at 1.3160 trying to establish a low.

We may have retracement targetting 1.3270-1.3300 before resuming the downside movement.

Recommended trades:

BUYING at 1.3150 with TP at 1.3200, 1.3260 then 1.3300 & SL should be 4H closure below 1.3095.
WATCHING 1.3270-1.3300 so that any clear bearish reaction can be a short entry targetting 1.3150 again.