By: Colin Jessup
The Euro was stopped in its tracks again today by the weekly support zone at 1.2675 for the second time this week. Price moved down into this zone on Monday here in North America and opened Tuesday's trading at almost the same price as it closed on Monday, just above the 1.2675 zone. Today's action also saw this zone tested with a daily low of 1.2660 before a bearish close to the day at 1.2720.
Now price is hovering at basically the same level as yesterday's close more than half way through the Asian market session. While price has been slightly bullish this morning in Tokyo, it has not been able to gain any momentum and makes it even more likely that we will see price test or break the previously mentioned support zone during the London or New York sessions.
If the downward pressure continues, look for support in the 1.2700 area, then 1.2587 and again at 1.2500. If action turns bullish we will see hesitation at the 1.2820 level, and more resistance at 1.2900 and again at 1.3000.
With the majority of the weeks since August 2011 being Bearish, it is likely that we will continue this trend for some time, including the next few days.
Cheers