EUR/USD Forecast December 28, 2012, Technical Analysis

The EUR/USD pair is without a doubt one of the least interesting ones at the moment. We are caught between the 1.3150 support level, and the 1.3300 resistance level. The last couple of candles have long wicks to the upside, so this does of course suggest that we are running out of steam for the buyers. If that’s the case, we could see a significant pullback.

However, we see the 1.3150 level as a massive barrier for the sellers to overcome. It’s because of this that we are not selling this pair until we close below that on a daily candle. If we do manage to do that, there is a good chance that we will only fall down to the 1.29 handle though, as it is significant support. With all things being equal, we expect this pair to do almost nothing over the next two or three sessions as the volumes will simply be far too light.