FX.co ★ EUR/USD Buy Above 1.30 - April 05, 2012

The EUR / USD pair has broken througn the 1.3112 weekly support due to uncertainty about the debt crisis of Europe with Spain in focus. As a result, the euro slided towards the level of the third week support 1.3032 (W_S3)

On technical level we can see that the euro is in a very strong support level, the 1.3032 and 1.3000 and as tomorrow is a holiday, we believe that will be consolidated at current levels.

We therefore recommend buying with a possible rebound towards 1.3226.

Else we can say that the formation of a reversal pattern, which has bearish implications with medium-term objective at level 1.2500, is likley to take place.

The range indicator and Momentum are in overbought area and a rebound is imminent.