EURUSD is back to 1.3 as dollar falls,

Dollar has extended its loses today against Euro and Sterling, completing a 3 day fall.

The major activity in the market was just around 13:30 GMT when a government GDP report showed the U.S economy contracted by -0.5% just as the market expected, easing fears of a steeper drop.

As a result, traders sold the Dollar at the time of the report’s release , sending EURUSD back to 1.3 and USDGBP up by 400 pips to test 1.54.

Technically, the buy signal of EURUSD was already on the charts yesterday
Since it was yesterday that this pair has broken its triangle shape moving above 1.2700. I am talking about the  same triangle that was mentioned on this blog on Nov 19.

Net resistance area for EURUSD is around 1.3120, a clear break might send us to test a more serious resistance area at 1.3280.
The first support area is at 1.2816, the next support is around 1.2600.

Whether you are on the long side or on the short side of the Dollar, remember that the market is still very volatile in comparison to its average activity. It’s better not to hang on too hard to losing trades.

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