Well, in the previous post I had mentioned that I expected a support near 1.3080. The support came there i.e. at 1.3077.

Now I would expect a resistance near 1.3065. If a firm break take over that then I would take that as an indication that the recent downward correction is over and possibilities of a retest of 1.3233 and then the earlier upward correction to continue would become stronger. On the other side if EUR/USD breaks below 1.3077, I would still expect supports in the range of 1.3005 to 1.3040. Any strong below 1.3000 will change the focus towards downside (depending on the momentum of break).

The supports mentioned matches with the supports mentioned over the weekend under eurusd forecast.

Overall the outlook remains bearish and uncertainities continue. Any upward move is considered by us just as corrections for short-term, with the rise of occasional short-term expectations from Euro zone about the debt crisis. This outlook will remain in place till some important resistance are not broken.

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