FX Strategy 4 July 2013

EUR/USD weekly chart

Market has sold off to the 55 week ma and uptrend, beyond a small rebound we look for this to
be eroded.

EUR/USD has reached key support at 1.2931/1.2885, the 55 week moving average and the 2012-2013 uptrend and 78.6% retracement. We suspect this will hold the initial test ahead of losses to 1.2796, then the 1.2740 April low.
Rallies will have little to no impact while capped by the 1.3072/1.3103 resistance (55 and 200 day moving averages and the high from the 28th June). Key resistance remains 1.3414/39, the 200 week ma and the 2011-2013 resistance line.
Please note we would consider a weekly close below this 1.2885 zone as the trigger for a slide to 1.2661/80 and eventually 1.2051.
To know more click here