EUR/USD: Bouncing on the 200 Day Moving Average
EUR/USD bounced on its 200 day moving average yesterday. Monitor the hourly resistance 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.