EURUSD
The dollar extended its gains Vs the Euro on yesterday, breaching the key support level at 1.2730 and establishing the daily lows just above 1.2660. Resistance is now seen at 1.2700 followed by 1.2730 and 1.2760. Support is formed by 1.2680 backed by 1.2660 and 1.2630. We don’t look too far into the South area, yet, as a reverse is still possible even if the said key support at 1.2730 didn’t hold. Momentum is mixed on both hourly and dailies. We expect 1.2700 to be a soft resistance in case of an Euro climb but a break through the 1.2730 and 1.2750 levels is needed in order to confirm the end of the current decline. Looking lower, a break of 1.2660 may accelerate the decline into the lower half of 1.26′s, where the Euro will face important support at 1.2630. Current exchange rate is 1.2687
Trading strategies:
Long in the 1.2665 area, stop below 1.2635, objectives at and above 1.2715.
