Comment: Euro’s decline was sharp due to the Italian elections, that brought Euro zone’s problems back into focus causing risk aversion and profit taking in the markets.
Regarding euro’s technical outlook, the break of the basic trend lines and support levels cancels the possibility of a rise back to previous tops or higher.
The trend reversal and the move to new lows seem as the most possible scenario. Our first target is being tested at 1.3000 area. Next possible target is clear in the 4hour and the daily chart at 1.2880-00 area.
In the short term, we will focus on 1.3140-50 resistance area, and 1.3080-00. The first reach of 1.2990-00 area will offer buy opportunities, while traders are likely to sell euro above 1.3100 area.
Strategy: We will try buy orders at 1.2990-3010, with stop below 1.2970. Sell orders will be tried at 1.3120-40 area, with stop above 1.3180 and open targets…