Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for December 21, 2012

After confirming Wednesday closing price reversal top, the EUR/USD is now in its second day of correcting the rally from 1.2876 to 1.3308. The expected downside target is 1.3092 to 1.3041. 

Besides the potentially bearish chart pattern, the Forex pair has also crossed to the bearish side of a long-term uptrending Gann angle. This move indicates weakness. Currently, downtrending resistance angles are at 1.3228 and 1.3268. These angles are expected to guide the market lower. 

In addition to the 50% level at 1.3092, an uptrending Gann angle at 1.3096 is also a potential downside target. This makes 1.3096 to 1.3092 a possible support cluster. With this zone targeted to be tested on December 24, traders should brace themselves for a sharp break over the next two days. If this zone is tested, watch for a technical bounce to the upside.