FX.co ★ EUR/USD Bearish Outlook for August 07, 2012 (Daily Strategy)

The EUR/USD pair remains above 1.2395 fractal, an area that was moved during Monday session, despite the release of German factory orders data which demonstrated a higher than expected fall in July. This data in another context would have generated a significant drop in the pair, but for now pushed it back for only a few points.
It is possible that the euro can continue this upward trend, but on its way to the south the currency has many obstacles, for example, the level of 1.2485 is the resistance weekly, and the fractal above 1.2510 is a very strong level to overcome and stay above. On the other hand, the euro will continue to suffer from European crisis for a long period of time as no decision was taken.
Therefore, we recommend selling the 1.2485 level, with short term to the nearest support of 1.2210. The stop loss is placed above 1.2510 fractal.

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