The EURUSD continued its decline due to the uncertainty of the global market and the recovery of the USDx from last week's trading activity. On the technical perspective, a retest of the previous low of 1.3025 is currently open for assault as long as the rally for the USDx would continue with its current pace working at the 79.80 basis point nearing its 1st resistance level of 80.05.
The closing price for the week is critical now with the USDx registering a higher low at the 78.09/10 support area. This USD rally was triggered by the testimony of FED Chairman Ben Bernanke's quiet stance on QE3, US consumer confidence and renewed interest for USD flight to quality investor shifting from the previous metals dramatic plunge to its current low levels. Daily price corrective moves are expected but the overall market sentiments are still bearish. The 2nd level of support would be at the 1.2950/80 levels that may well meet some bids and long liquidation for most position traders still has a bullish GBPUSD outlook.
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