EUR long−term objectives could see it go further down against US dollar

Forex Special

	Long signal	Short signal
	Buy a break of resistance level at 1.2800	Sell a break of support level at 1.2655
EUR/USD	Buy a break of resistance level at 1.2750	Sell a break of support level at 1.2600
	Buy a bounce at 1.2655	Sell a failure of breaking the resistance 1.2800

Fundamental

The Euro finished the week at fresh monthly lows against the US Dollar, briefly breaking below the psychologically significant 1.2700 mark before recovering marginally into Friday’s close. A relatively uneventful week of trading left the EURUSD in a tight range until the very end; a near-2 percent decline in the Japanese Nikkei 225 sparked similar declines in European equity indices and took the EURUSD lower on a broad-based US Dollar advance. The week ahead promises a pickup in economic event risk, and the recent EURUSD downtrend leaves it at clear risk of breaking below key support at 1.27. It will be critical to watch whether economic data will be enough to deep the European currency aloft against its US counterpart.

Technical

Technical analysis shows us the euro may continue its downtrend against U.S. dollar as MACD shows a divergences. RSI is in a downtrend. Bollinger gives a bearish signal by closing the candle below the middle band.

EUR/USD (Daily Chart)

The primary tendency gives a bearish trend.

EUR/USD (4 Hour Chart)

The pair breaks 2 moving averages downwards.

EUR/USD (Hourly Chart)

The Minor trend is trying to break Fibonacci fan.

Resistance
1.2800
1.2750

Support
1.2655
1.2600