Euro (€) / US Dollar ($) (EUR/USD) Mid-Session Update for January 4, 2013

The EUR/USD is rebounding at the mid-session following an early sell-off. Overnight the market took out an uptrending Gann angle at 1.3056 and a Fibonacci price level at 1.0341. Once this support cluster was broken, sell stops were hit and the market broke sharply toward another uptrending Gann angle at 1.2966. 

A shift in sentiment following the release of the U.S. Non-Farm Payrolls report led to an intraday reversal which has put the Euro in a position to finish the day higher. If the market can build support over 1.3041 throughout the day, then the odds are strong the EUR/USD will finish higher. 

Since the main trend is down on the daily chart, the rally is likely to be short-lived as sellers are probably waiting to re-establish their positions. This selling pressure is likely to re-emerge at 1.3139.