The EUR/USD pair shot straight up during the session on Wednesday as word got out that the U.S. Congress had come to an agreement involving the so-called “fiscal cliff” during New Year’s Day. Because of this, we think that this market should have gone much higher, but the fact that 1.33 has offered so much resistance does make is very curious. It is obvious that the 1.3150 level is massive support, and if we can get below the 1.31 handle we will have certainly broken below that significantly. A move to 1.29 would in fact be expected at that point time, and because of the candle shape, this pair looks very vulnerable all of the sudden.
Written by FX Empire