EUR/USD Intraday technical analysis 2012-12-24	0/5

Show full picture The spot rate approaches the intermediate resistance of its medium term bullish channel at 1.3220 and seems to initiate a decline. However, a break of these levels will free a large potential to reach the upper limit of its channel at 1.3300.
Technical indicators provide buy signals but, until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have stabilized showing more regular volatility.The spot rate is currently testing the intermediate resistance of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend selling at the level of 1.3220 with the 1st objective at 1.3160 and then at 1.3140. A break through 1.3240 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a “buy stop”, which means to buy the spot rate as soon as it has broken through its resistance of 1.3220 with the 1st objective at 1.3280 and then at 1.3300. A break through 1.3200 will invalidate this scenario.