Resistance: 1,3300-10/ 1,3340/ 1,3380/ 1,3430-40/ 1,3485/ 1,3530/ 1,3570...
Support : 1,3220-30/ 1,3170/ 1,3130. 1,3100/ 1,3070/ 1,3045-50
Comment: Euro's decline was continued as the market expects ECB to cut interest rates further on Thursday, and the decline in commodity prices made dollar a safe heaven (!!!) and confirmed the downtrend.
The area of 1,3310-30 was confirmed as a resistance and later, during US Session, euro moved close to the important support of 1,3080-3110, forming a low at 1,3135.
The short term trend remains bearish and the area of 1,3310-30 is tested again as resistance. A clear break in these levels would indicate that bulls try to gain momentum in the short term and the area of 1,3375-85 or 1,3430-50 should be tested.
We would have reversal signs after a consolidation and daily close above 1,3400 area. If 1,3330 area cannot be breached or we see a false break and sharp retracement below 1,3300, it would mean that bears dominate and a retracement to 1,3220-30 will be our first target, while below these levels, yesterdays lows at 1.3080-00 are likely to b e tested.
A possible decline resumption below 1,3070, would give as next target the area of 1,2850-00...
Sell orders could be tried at 1,3310-30 area with close stops. We could also try sell positions at 1,3430-50 with stops above 1,3485.
A possible upward break of 1,3330 could be used for buy orders, but stops should be set much lower, as the upward reaction from yesterday's lows was formed without any correction. Possible target for buy orders above 1.3330, is the area of 1,3380 and 1,3430-40.
Buy positions could also be tried at a possible retracement to 1,3220-30, with stops below 1,3185 and target at 1,3300-30 area.