EUR desperately is trying to find direction as is reached 1.3000 level. From one side we have some better recovery in the USA, but still with a fiscal cliff threat, and from the other side we have a spreading debt crisis in Europe and continuous active financial policy of the ECB with a no rate cut promise of its chairman. So in this situaton is very difficult to make a forecast only on fundamentals. Let's take a techical look. This week is the best chance to break lower if not today then in the next 2 days. But if we fail again at 1.2940 an immediate and strong recovery will follow to 1.3100 at least. I am still thinking that before we go to 1.3170-1.3250 will be too hared to break the 1.2900 ot the break will be very short lived. Nevertheless the chance of breaking lower is great and first major support is @ 1.2870-1.2850. If that is broken then we are going to 1.2740 where is the upside channel support line. If we go there use that levels to buy EUR. To the upside we have resistance at 1.3050 and 1.3140 then 1.3170.
GOLD still wonders what to do, but you may try small longs above 1572.
LONG EUR above 1.2980 SL 1.2960 TP 1.3050-1.3080-1.3130-1.3170
SHORT EUR on H4 closed bar below 1.2940 SL 1.2960 TP 1.2880 and below
SHORT EUR below 1.3170 SL 1.3190 TP 1.3080-1.3050
LONG GOLD above 1572 SL 1568 TP 1588-1595
SHORT GOLD below 1568 SL 1572 TP 1555 and below