EUR/USD Forecast for the week of December 10, 2012, Technical Analysis

The EUR/USD pair tried to rally during the bulk of the week as we approached the 1.3150 level. However, that level proved to be far too resistive again and we fell in order to form a shooting star. Oddly enough, the bottom of this week’s shooting star matches up perfectly with the bottom of last week’s hammer. Is because of this that we think a move below this week’s low would signal a return to the 1.27 level in short order. It is at that point we would run into serious support and we would have to wonder whether or not we could break it down. If we do, 1.20 would be calling. Alternately, if we managed to break above the 1.3150 level we could see much higher valuations in this currency pair.