EUR/USD Weekly Technical Report 31/12/2012 – 4/1/2013

The pair is still affected by the negative divergence referred to earlier as shown on the graph, as stability below 1.3250 levels makes us think that a bearish harmonic technical formation was formed and might push the pair to the downside. During this week, the support level 1.3170 is our intraday barrier and breaking it might extend the bearish move.

The trading range for this week is among the key support at 1.2975 and key resistance at  1.3350.

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

Support 1.3170 1.3120 1.3065 1.3030 1.3000

Resistance 1.3235 1.3250 1.3285 1.3310 1.3350

Recommendation Based on the charts and explanations above our opinion is, selling the pair below 1.3135 targeting 1.3170, 1.3120 and 1.3065 and stop loss with four- hour interval above 1.3310 might be appropriate this week.