EUR/USD Forecast October 1, 2012, Technical Analysis

The EUR/USD pair initially rose during the Friday session, but fell once we get close to the 1.30 handle. The resulting move have the market falling down towards the 1.2850 level, and the candle does in fact look fairly week. If a break of the Thursday lows happens, it is very likely that we will end up testing the 1.2750 support level. In fact, we think this is a most likely scenario.

We still think that there is quite a bit of bullishness underneath this pair, and as such we aren’t necessarily going to be quick to short this market. We think eventually the Euro falls, but in the meantime it looks like we have a bit farther to go to the upside.

Written by FX Empire