EURUSD: The euro fell for a third consecutive week last week against the US dollar and dropped through the major 1.3000 support and resistance level, also breaking below a supportive trendline. Looking out for this week, the 1.2750 level shapes up to be a very important level for this currency pair. A drop below this level will likely accelerate the downward price action and bringing up a possible test of 1.2500 in the near future.
Meanwhile, if prices can consolidate and stay above the 1.2750 level, we could see the bulls pushing the pair up for a new test at the 1.3000 level again. Near term resistance this week looks to be at the 1.2850 level while the downtrend must overcome the 1.2800 threshold before the 1.2750 test becomes a reality.
Written by Zac Storella, CountingPips Forex Blog & Currency Pair Technical Analysis
