Having started the week in a soft tone, the EUR/USD got hit early Europe by German Ifo survey that marked its fifth successive decline. News that Greece needs another budget cut of above 20B euros and Spain not yet pronounced on a bailout request are also weighing on the common currency, that fell as low as 1.2895 so far, and traders barely above that mark, looking heavy in the 4 hours chart: indicators gain bearish momentum and keep heading south, while 20 SMA stands around 1.2980 offering dynamic resistance in case of a bounce higher. Immediate support comes at the 1.2880 level and if impinged, the pair has scope to extend its slide towards 1.2820 price zone: expect buyers to surge if reached.
The short term bearish momentum however, is still temporal and seems too early to talk about a roof and a reversal: 38.2% retracement of latest bullish leg stands around 1.2750, and only a daily close below will made the bullish trend hesitate.
To the upside, 1.2930/50 is immediate resistance area, and short term sellers will likely appear if reached; but it the level is finally beaten, the pair will likely recover the lost ground back to the 1.2980/1.3010 price zone.
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