EUR/USD Forecast for the Week of December 19, 2011

EUR/USD had a very bearish week as traders pushed the market to retest the 1.30 level for support. The level did hold, but the candle closed very near the lows for the week. The lack of enthusiasm in buying at the level also suggests that the pair is going to have a very hard time in rallying going forward as there are simply far too many negative headlines coming out of Europe to make traders want to buy the Euro presently. Because of this, we want to sell, but there is significant support below this area down to the 1.29 level, and we are looking for rallies to sell from. A break below the 1.29 level on the daily close would also have us selling. We will not buy at all.