Trading strategy: short at 1.3000, stop at 1.3070(1% risk), objective at 1.2860
Bulls' optimism fades away as the euro could not sustain gains into the 1.3 region yesterday and dropped to Friday's levels, filling the opening gap. 1.2700 provides a minor support now that earlier established support around 1.2740 formed by the 61.8% of last up leg from 1.2520 to 1.3095 has been breached. Downside pressure remains high and yesterday's rally was just a new opportunity to grab more selling orders. Break above 1.3100 on first phase is necessary to signal a change of the short-term structure. It also seems likely that volatility will remain high - averaging over 250 points / day until the markets will eventually calm down. Current exchange rate is 1.2703 @06:15 GMT
Support: 1.2700, 1.2600 and 1.2500/25 Resistance: 1.2800, 1.2900, 1.3050 and 1.3100 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish
Have a good day!