FX.co ★ EUR/USD Bearish Outlook for August 21 /2012 (Daily Strategy)

The euro after a day without movement, surpassed today its high of August 7 at 1.2437, and now is trading above second support weekly above 1.2454; this optimism is due to unexpected lower costs of Spanish and Italian debts.
The pair may continue its uptrend until resistance level of 1.2525, we believe that at this time there will be the beginning of a new bearish sequence in the pair. The economic problems of the European Union are far from settlement and, as a result, I think it is only a matter of time before the Europeans are punished again.
Therefore, we recommend selling at 1.2520 if this level is reached in the coming days with targets at strong support level of 1.2324. Or, if the pair is back to take an impulse, we recommend buying at 1.2394 with targets at 1.2520.
Our outlook for the pair remains bearish in the medium and long term.

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