EURUSD failed to break above $1.3228, which is the 50 percent Fibonacci retracement of the February to April decline.
The MACD has generated a sell signal and EURUSD has fallen below its 50, 100 and 200‐day MA, likely indicating that there is building downward pressure on the pair.
EURUSD is hovering just below the 61.8 percent Fibonacci retracement of the move from the November 2012 low to the February 2013 high, at $1.2970 in Monday’s European trade.
Recent developments favour dollar strength. Should there be a correction to $1.3150, EURUSD selling is more likely at those levels.
A break below $1.2935 would set the stage for a test of support at $1.2890, a level which coincides with the 78.6 percent Fibonacci.