EUR/USD 1H Chart 9/24/2012 9:45AM EDT
The current 1.29 handle is showing some demand for EUR/USD, but the focus still appears to be bearish in the near-term. There is a minor pivot at 1.2875, but I think the more important support will be down in the 1.2815-1.2820 area.
In the daily chart, you see this as a previous pivot as well as a rising trendline that was broken as resistance as the EUR/USD accelerated early September. Also, the 200-day SMA is at about 1.2820. The 200 day SMA is not a support factor per se, but is a moving average highly monitored in the daily and weekly charts. Also, if the market bounces off the 200-day SMA, giving some elbow space, there would be a bullish “slingshot” signal.
Below 1.28, we have 1.2750 as a key pivot to monitor. The final line of defense against the bearish continuation scenario will be the rising trendline from late July.
EUR/USD day Chart 9/24/2012 9:50AM EDT