EUR/USD got an initial pop on Monday as the austerity measures passed in Athens. However, this excitement was short-lived, and the sellers stepped into the markets. The 1.3250 level has been one the market has been flirting with lately, and it also happens to be the 38.2% Fibonacci retracement level. The trend has been down over the last 6 months or so, and headline risks still abound in Europe so we feel much more comfortable selling the Euro than buying it. On a break of the bottom of the Monday session, we expect the pair to fall down to the 1.30 level. The buying of this pair isn’t in our thoughts until we get above the 1.35 level, which also happens to be just a bit over the 50% retracement as well.
Written by FX Empire