EUR/USD Intraday Technical Analysis 2012-12-17	4/5

Show full picture
The spot rate is currently testing the upper limit of its medium-term bullish channel at 1.3190 suggesting a decline. However, a break of these levels will initiate a more violent bullish channel.
Technical indicators do not provide clear signals, but evolve in overbuy zone and until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in the short term.
The spot rate is currently testing the upper limit of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we advise a sell on the level of 1.3190 with the 1st objective at 1.3130 and then at 1.3110. A breakthrough of 1.3210 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.3190 with the 1st objective at 1.3250 and then at 1.3270. A breakthrough of 1.3170 will invalidate this scenario.