April 24, 2013 – EUR/USD (daily chart) has stalled and consolidated around the key 1.3000 support level after dropping from an intermediate high of 1.3200 established last week. The current bearish bias can be considered a move towards a potential resumption of the bearish trend that has been in place since the beginning of February. Further downside momentum below 1.3000 would strengthen this indication, with an initial bearish objective around the 1.2750 support area. This target was double-tested in late March and early April, before the latest bullish correction to 1.3200 commenced. In the event of a further price move below 1.2750, which would confirm a downtrend continuation, the key objective immediately to the downside resides around the major 1.2650 level. Strong upside resistance is now established around the noted 1.3200 pullback level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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