Could Euro Fall To 1.2600?
- Declining for the 7th straight session, things aren’t looking good for the Euro. The single currency failed to break back above the 1.3015 resistance level, critical for any further momentum higher. Now, below the the 1.3000 round figure, and near the session low of 1.2910, technical indications are siding with further declines in the spot rate against the US dollar.
- Trading at 1.2930, the exchange rate is only slightly higher than the session low of 1.2910, and dangerously below the last level of defense at 1.2949 or the 61.8% fibonacci retracement level from 1.2627-1.3470 bull wave. A break below this daily support level is expected to exacerbate any decline in the single currency, increasing the probability of a near term test of the January 16th 1.2627 session low.
- But, should the price action find enough bidders to close above the 1.2949, this could support some mid term buying, with upside targets set at 1.3040.
More technical analysis - Euro Retraces Losses, Bounces Back Above 1.3000