Resistance: 1,3030/ / 1,30701,3110/ 1,3170/ 1,3200 1,3230/ 1,3270/ 1,3310/ 1,3350/ 1,3380-85
Support : 1,2930/ 1,2890-00/ 1,2855-60/ 1,2830/ 1,2790/ 1,2750
Comment: Euro continued the downward move and reached our targets at 1,2850 area. Bulls made their appearance at 1,2850 and led euro back above 1,3000, but this move wasn't strong. This reaction is in terms of a downtrend retracement, and we have no reversal signs yet.
A reversal sign today would be if the price remains above yesterday's lows and a move above 1,3030, which will be turned into a support during retracements. In such case, the area of 1,3200-30 would be a possible target and if it is breached the area of 1,3400-30 would follow.
If the area of 1,3030 is now breached, the trend will remain bearish and our targets will be at 1,2810-50 and 1,2550..., which is the base where the move began. The downgrades in European countries bring a negative sentiment in euro and this should keep the downtrend.
The trend remains bearish and sell positions would have target at 1,2850 area, with stops above 1,3050.
We would prefer to try buy positions at a break of 1,3030, with target at 1,3200-30 and stops below 1,2950.
Alternatively, we could try sell orders at a downward break of 1,2850 with target at 1,2600 and stop above 1,2900...