EUR/USD: Too late to join, too early to look for reversals

Posted by on Dec 19, 2012

Usually by the end of the month, pairs tend to correct against dominant trend, as traders book profits. Not the case of the EUR/USD that nearing London close sunk to a fresh yearly low at 1.2335. With a monthly high at 1.3283, the pair felt near 1000 pips this May, and the bearish trend, holds in place: a daily descendant trend line from mentioned high is located at 1.2560 today, near 200 pips from current price, and unless a break higher, the upside potential will remain limited. 
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