The EUR/USD extended its slide to 1.3174 today, mounted on risk aversion after the big failure of US Fiscal Cliff republican “plan B”. Stocks nose dive and remain under pressure in this European session, while the EUR/USD trades below 20 SMA in the 4 hours chart, still refusing to fall: the pair again found buyers around the 1.3180 static support level. However, the risk remains to the downside today, more of profit taking ahead of the long holiday than anything else.
As long as below 1.3230 area, the pair has scope to continue falling, with a break below mentioned daily low favoring a continuation towards 1.3120/40 area first. If below this last, 1.3080 is next.
Price needs to regain 1.3250 to erase the bearish bias and attempt another run towards 1.3290/1.3310 area, not likely for today.View Live Chart for EUR/USD