The EURUSD is also being pressured once again today The pair is moving back in the range that prevailed during the end of October to Dec 11 time period. A ceiling now (resistance ) will be the 1.3080 level (see chart below). The low target price would be the October 27th 2008 low of 1.2334. Other support comes in at the 1.2856 level and the 1.2549 level although support is not all that strong honestly.
The bias is certaintly down. The pressure on some member states like Portungal, Ireland, Greece and Spain has investors nervous about the Eurozone. Despite the rebound in the ZEW survey today, the sentiment for the pair remains weak.
So where would the technicals turn around? The 1.3025 level was the low last week. A break above this will be give some positve encouragement. The 1.3080 level was the high in November 2008 (see chart above). However, a break of the 100 hour moving average will really be needed to shift the bias up. That level currently comes in at the 1.3173 level. With prices well below these levels, there always can be a correction - especially with the improvement in the ZEW surveys this morning. So be alert for a change in momemtum (or a slowing of the downside pressure), but the change in the bias has a ways to go before it turns up again.