Trading strategy: short around 1.2510 on hourly close below 1.2515, stop at 1.2570 (1% risk), objective at 1.2410
Risk still lies to the downside as the euro continues its bearish trajectory, retesting last week's bottom at 1.2520. The said support holds for now and a correction might be underway, but playing from short side remains a feasible plan - looking for short opportunities on a squeeze to mid 1.27 up to 1.2800, while the euro is far from technical levels that would indicate an end to the current downtrend. Intra-day sentiment is also bearish and first resistance levels are seen at 1.2600, 1.2670 and 1.2750. Potential break below 1.2520 would open 1.2330 - 4 years low. Current exchange rate is 1.2536 @06:09 GMT
Support: 1.2500/20, 1.2400 and 1.2330 Resistance: 1.2600, 1.2670, 1.2700, 1.2750 and 1.2800 Market sentiment: long term - bullish, medium term - bearish, short term - bearish, intra-day - bearish
Have a great weekend!