FXstreet.com (Barcelona) - Operating in a 50-pip range since the Asian session, the EUR/USD has been very slow paced in the first trading day of 2012. No fundamentals for the American session and bank holidays in the UK and the USA are the main reasons for low volume and movement.
At the moment of writing, the EUR/USD is pushing to the downside after trying to get back to the opening price at 1.2944. The pair is now testing the daily low, at 1.2923, obtained in early American session.
FXstreet.com analyst Valeria Bednarik says that “hourly chart shows a limited bearish tone as per recent range, with price developing below 20 SMA and indicators heading south right below their midlines. In the 4 hours chart, price has been contained by a bearish 20 SMA, suggesting no much recovery chances for the common currency”.
Bednarik points to supports at 1.2920, followed by 1.2870 and 1.2845. On the upside, resistance areas might be found at 1.2970, ahead of 1.3000 and 1.3045.