By: Colin Jessup
In the last hours of the Tokyo trading session, the EUR/USD seems to be confirming that is has broken through the support zone that has been holding it up since January of this year. The Euro closed yesterday below this zone, but some traders were speculating that it would move back up above 1.3075 during the Asian sessions, which it in fact has not. With action being mostly bearish these past 4 trading days, and with little in the way offering additional support, we could see the Euro hit 1.2900 before the end of the week. Oh there is SOME resistance, at 1.2980 and again at 1.2960, but if those both fall, 1.2900 is a safe target. If the direction changes however, 1.3075 now becomes heavy resistance and the Bulls will have to fight to break above once more. There is allot of traffic to the left at between 1.3075 and 1.3200, and above 1.3320 there is a pretty nice Technical Vacuum which could pull the pair higher once more. I am Bearish on the Euro below 1.3050.
Happy Trading!