EUR/USD: Decline is Approaching First Key Support Area
EUR/USD continues to weaken since its high at 1.3172 (17/09/2012). Prices are now approaching the support area near 1.2755 (11/09/2012 low, see also 38.2% retracement from previous rise and up trendline). Hourly resistance is at 1.2971 (25/09/2012).
The lack of a base formation or sell-off suggests that the recent Euro strength is a rebound within an underlying downtrend. The current weakness near the 38.2% retracement of the decline from May 2011 to July 2012 suggests limited short-term upside potential and the start of a new down phase.