Trading strategy: small short at 1.3030, stop at 1.3090 (0.5% risk), objective at 1.2930
Euro's decline accelerated after breaking below 1.3100 and 1.3000 yesterday, printing a session low at 1.2830 - which was 350 points down from the daily open. Dollar's appreciation across the board comes after the Fed said that the U.S. economic growth slowed - hence the sell off in most risk sensitive pairs especially against the Yen. Short term sentiment has weaken but it is early to call a resume of downtrend, so we should keep an eye on the 1.3000 level which may provide resistance now. On the downside, next support region starts around 1.2730, backed by 1.2600. Current exchange rate is 1.2910 @06:03 GMT
Support: 1.2800/30, 1.2730, 1.2600 and 1.2500
Resistance: 1.3000, 1.3100 and 1.3250
Market sentiment: long term - bearish, medium term - slightly bullish, short term - slightly bearish, intra-day - bearish
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Have a good day and happy trading!