FXstreet.com (Barcelona) - The single currency is back to the 1.2940 region on Monday, as market participants are extending their preference for riskier assets.

According to I.Spivak, Currency Strategist at DailyFX, “prices moved lower as expected after putting a bearish Dark Cloud Cover candlestick pattern. Sellers are now testing the 23.6% Fibonacci retracement at 1.2904, with a confirmed break on a daily close below this level targetinf the 38.2% Fib. at 1.2739. Near-term resistance is at 1.3042, the underside of a recent broken rising trend line set from the November 13 low. A push above that targets the top of a channnel carved out since mid September (1.3093).

At the time of writing, the cross is up 0.36% at 1.2937 with the next resistance at 1.2972 (38.2% of 1.3127-1.2876) ahead of 1.2974 (high Dec.7) and 1.2986 (MA10d).
On the flip side, a breach of 1.2880 (low Dec.10) would open the door to 1.2876 (low Dec.7) and 1.2839 (61.8% of 1.2661-1.3127).