Euro vs US Dollar Stalls Bearish Retracement Above Key Support

<p>EUR/USD (daily chart) as of January 7, 2013, has tentatively stalled its bearish retracement of the past week right above key support around the important […]</p>

EUR/USD (daily chart) as of January 7, 2013, has tentatively stalled its bearish retracement of the past week right above key support around the important 1.3000 support region. This occurs after price attained a double top last week and turned down, respecting strong resistance around the 1.3300 area. In the process of dipping down to the 1.3000 support region, price has also approached a key uptrend support line extending back to the July 2012 1.2041 low, as well as the 50-day moving average. With this strong confluence of support around 1.3000, price can be considered to be at a critical juncture. In the event of a bounce off this 1.3000 support, the 1.3300 area could once again serve as potential upside resistance on a recovery of the current pullback/retracement. If the 1.3000 support confluence is broken to the downside, which could break or disrupt the bullish trend extending back to July 2012, price could move towards further potential support around the 1.2800 price region.

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