EUR/USD Weekly Technical Report 24-28/12/2012

The pair was rejected at 1.3300 key resistance level, as price reverses to retest the major broken resistance which turns now into support starting among 1.3170 to 1.3125 area, the overall bullish configuration is still intact despite the retreat, as price continue to trade above 1.3125. Accordingly, we expect the bullish bias this week  to resume from areas at or above 1.3125. On the other hand, settling below 1.3125 may push the pair towards the next support at 1.3040.

The trading range for this week is among the key support at   1.3000  and key resistance at   1.3480 .

The general trend over short term basis is negative targeting   1.1865 as   far as areas of   1.3550  remains intact.

Support 1.3170 1.3140 1.3125 1.3040 1.3000

Resistance 1.3190 1.3230 1.3290 1.3310 1.3380

Recommendation Based on the charts and explanations above our opinion is, buying the pair above 1.3125 targeting 1.3175, 1.3230 and 1.3305. Stop loss below 1.3035.