EUR/USD Buy Above 1.2900 February 16, 2012 (Weekly Strategy)

EUR/USD

The Euro - U.S. Dollar pair, given that the request for 15 billion euros additional to overcome its difficulties, has encountered opposition from European leaders, who rely heavily on budget cuts or the application of quantitative easing measures. All this weakens the euro.

At the technical level, according to the Fibonacci lines, draw one from the beginning of the big drop (1.4244) and the other from the beginning of rebound (1.2627)

The first fold of fibonacci (bass) (red). shows that the euro made correction to the area of 38.2%, and at this time is above 23.6%.

The second fold of Fibonacci (bullish) (blue) shows the euro at levels of 50% retracement. and approaching to the key area of the 61.8% retracement.

Therefore, if the pair arrived at these levels, we recommend buying at 1.2900 with a mid-term target in the 61.8% fibonacci retracement of the bearish wave around 1.3630 dollars per euro.