Euro is struggling against massive negative sentiment given the wall of worry that exists over the debt crisis. In addition, there is a slight seasonal tendency for the Euro to go lower in January. It's not enough data to make a statistically compelling case but it is a tendency.
The first question is whether it can make it past December's high of 1.3500 and then 1.3640. If it can, then above that is the 1.3779/85 area where there is a cluster of resistance from price, fibs, and moving averages. Support lies at 1.3230, 1.3056 and 1.2969 (Dec and Nov lows).
Estonia began using the Euro January 1. Even though they're a poor country, they're probably one of the most solvent.
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.