EUR/USD is eyeing the 1.29 area
With the US having avoided the fiscal cliff for the time being, the euro was among the worst performing currencies in the past week with the bears dragging the single currency all the way back to the key support level at 1.30. The EUR/USD kick started the day at a negative footing this morning and at 1.3027 at the moment of writing the bears seem to have full control of the market. A major driver this week shall be the ECB rate decision on Thursday. With the Euro falling by 24 pips on the day of November meeting and 98 pips on the day of December meeting and with no policy change expected, there is little hope for bullish motivation this week. A consistent break below 1.303 would open the door for the next major support levels at 1.299 and 1.2935. In the alternative scenario, only the upside penetration of 1.317 could delay the downside movement. On the economic data front, things are quite today with a swathe of major figures being released tomorrow. Traders will be eyeing the German and French Merchandise Trade reports as well as the EU Unemployment Rate due for release on Tuesday.
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