EUR USD day-traders have their first big read at 1.2945.
EUR USD day-traders have their first big read at 1.2945. This price marks a Fibonacci retracement of the 1.2456 to 1.3737 range. A test of this level could trigger a short-covering rally.
The first test of this level is likely to attract profit-taking. Counter-trend buyers may also step in at 1.2945. Short-term traders will have to decide whether to pull in their short-positions and play for the retracement or leave the position alone for a breakout to the downside.
Either way this is not a good area to initiate new selling. Watch for a momentum shift as the market approaches this area.