EUR/USD stays below 1.3240 level

EUR/USD stays below 1.3240 level

"Unless we see an immediate resolution over the fiscal cliff, I'm afraid we'll have a chaotic morning on Jan. 2, where cross-yen currency pairs and the euro-dollar are sold off" - Sumitomo Mitsui Banking Corp. (based on Bloomberg)

Pair's Outlook

The major currency pair withstood a bulls' attack last week and today remains below the 1.3240 level. As the price has already made a double top pattern on a daily graph, it is very likely to experience a gradual depreciation, at least to normalise the values of technical indicators. The closest support area is at 1.3124/13 level, where the monthly R1 merges with the 20-day SMA.

Traders' Sentiment

Bears remain the major players in SWFX market now, as 30% of positions are long and 70% are short. Pending orders market increases its bullish sentiments, since the buy side reaches 60% and the sell side 40%.