EUR/USD: Finds Support Close to the 1.2955 Level
EUR/USD broke under the 200 day moving average. We now look to see if the break lower can be maintained. As mentioned in Friday's report, the 1.2955 region is anticipated to offer strong support. In any case a sustained break under 1.2955 would only weaken the recovery structure from 1.2746. However, in order to turn the bias outright negative again a clear push below 1.2746 is required. While above this level there remains scope for a further corrective swing to the upside.
In any case, the recent price action from 1.2746 is simply viewed as a corrective phase within a larger downtrend. Thus higher levels are sought for better trade location. Alternatively a break under 1.2746 could be sold into. For this reason we maintain our strategy below.