The pair is trading at the lowest point of this year, it breached technical support. This week the pair has the couple of key economic events. The German and Spanish CPI data are the key data to focus on as well as the US core PCE price index. Tuesday, German retail sales and unemployment data, French consumer spending and CPI flash data are due. The Spanish and Italian manufacturing data is slated on Wednesday, and the key events are the Thursday ECB press conference, Spanish unemployment and US unemployment claims. The pair hit the 200MEma and is trading below it, it has parallel support at 1.266 (November 2011 low), below this, 1.25, 1.2435 and 1.22 levels. As we recommended earlier, on the down side, 1.22 will act as strong support. On the US dollar front, it has been teasing its counter pairs for the last couple of weeks and is still going on. The US dollar broke the 85 mark, which adds more pressure on the Euro towards 1.22-1.20 levels.
For an intraday view, the prices are below 12ema and 34hrsma. Whenever the pair rises, the 34hrsma acts as strong hurdle and pushes it to new lows from there. The pair hourly and intraday resistance is at 1.2730 12ema, 1.2765 21hsma and 1.28 34hrsma. Until the prices close below 1.28, selling on every upmove will mint the money. The panic will be triggered below 1.266 towards 1.26 and 1.25 in the near term.
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