EUR/USD fell during the session on Monday as the traders took profit in a move that was explosive during the end of last week. The 200 day EMA is sitting just above, and this will have brought in longer-term trend traders as well. The area is also a 50% Fibonacci retrace from the fall we saw begin in October of last year, and the candle closed towards the lows of the session. With all of these factors, we are willing to sell this pair on a break below the bottom of the Monday range. We don't think this is a meltdown coming; rather it is a move down to the support level that we should see at 1.3250 or so. This is a short-term trade at best, just like anything else in this headline-driven market.
EUR/USD Forecast February 28, 2012, Technical Analysis
EUR/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3