By: Colin Jessup
The EUR/USD continued its bearish move today and landed square on a weekly support zone at 1.3160 that gave the currency a bullish push the last time it was at this level in October of this year. On October 3 & 4 of 2011 we saw prices fall to 1.3166 and then react immediately by closing the following day at 1.3354, almost 200 pips higher than the day before. Price continued to move up until it reached the October high of 1.4247 and then fell rapidly again. Now we find ourselves at this same level, and I am hoping to see a similar reaction...but not betting on it at this stage. If price holds above 1.3160 and turns bullish, look for daily resistance at 1.3400. If it falls and closes below 1.3160 look for minor support at 1.3070 and then daily support at 1.2950. I am cautiously bearish on this pair for now.
