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EUR/USD: news from the battlefield

Last week EUR/USD formed a strong bearish candle, pushing below the $1.3000 mark, touching $1.2800 and closing at $1.2830. On Monday the pair opened with a gap down at $1.2810, but strengthened to $1.2840. Dovish ECB meeting, concerns about Portugal and upbeat US NFP figure both extended the long-term bearish prospects of EUR/USD.

However, for now the $1.2800 area remains resistive, so we concede a short-term bounce higher in the near term. A break below $1.2800 would open the way to the next support levels at $1.2750 and $1.2650. Strategists at Credit Agricole expect the euro to test $1.2750 in the coming week.

Chart. Daily EUR/USD

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