EUR/USD Forecast December 12, 2012, Technical Analysis

The EUR/USD pair rose sharply during the session on Tuesday, and as a result we find the market closing the day above the 1.30 handle. We also are closing the very top of the candle for the day, which of course is always a bullish sign.

Now that we are starting clear the 1.30 handle, the real work begins. I see a ton of resistance above and going all the way to the 1.3150 level. Because of this, it is going to be difficult to buy this market, and as a result I would feel much more comfortable being involved at one of the larger and more long-term areas such as the above-mentioned 1.3150 handle. Because of this, we think that the Euro will be difficult to trade as it has moved so far in such a short amount of time.