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.
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