Our medium term bias is bearish with 1.2798 the prime target level. Although EUR/USD traded to the lowest level in 18 weeks yesterday, buyers emerged under Monday’s base (1.2830) but follow through buying pressure was not strong resulting in little net change for the day. There is scope for mild buying this morning (towards the intraday channel top of 1.2886) but any profit taking gains should find sellers. Although we need to see a clear break of 1.2827 to confirm the bearish momentum, the outlook is for lower levels today. The call is a Sell with a stop at 1.2890.There is only one target today, 1.2790, stepping inside the 261.8% extension. Further support is located at 1.2736 and 1.2690. The risk, however, would be with buying through a stop of 1.2890, breaking the channel top.
EasyForexNews Research Team