Resistance: 1,3055-65/ 1,3105-15/ 1,3170/ 1,3200 1,3230/ 1,3270/ 1,3310/ 1,3350/ 1,3380-85
Support : 1,2970-80/ 1,2930/ 1,2890-00/ 1,2855-60/ 1,2830/ 1,2790/ 1,2750
Comment: The week starts negative for euro, as fears regarding a recession in Europe and the constant downgrades led to liquidation.
The ranges for our upward scenario were set at 1,3180-00 and a downward break was expected to lead us to new lows.
The basic trend remains bearish, as it is clear in the daily chart, and if there is no important reversal and retracement above 1,3150, the move would be possible to be resumed to 1,2850-00 or even lower.
Support at 1,3000 is tested and buyers would confirm their strength after an upward break of 1,3060-70, which is the first intraday resistance. Next resistance is found at 1,3110-30, followed by a more important at 1,3170-00. A daily close above the last area, would bring back optimism regarding euro's rise.
If reactions are not strong and do not breach 1,3100, our targets will be set at 1,2800-50 support, and a move to the base of 1,2550-00 , where December's rise to 1.4700 started, could also be possible…
The short term trend is now bearish and we will follow it, trying sell positions at the retracements towards 1,3110-30 and 1,3170-70, where bears are more likely to gain momentum. Stops should be set above 1,3230 and we will keep our positions small...
Sell orders could also be tried at a move to new lows, with target at 1,290 and 1,2830-50. Stops should be set above 1,3070.
Buy orders could be tried at 1,2800-30, with stops below 1,2750 and target at 1,3000.