Price action in EUR/USD failed to break higher than a short-term resistance level set at its six-week high at 1.3219. The pair stalled at 1.3218 yesterday, and failed a test of its 38.2% fibonacci retracement of the move from October 2011 high to January 2012 low at 1.3244. The pair has found some short-term support on the 50-day moving average.
The pair remains in a bearish structure as long as the 38.2% fibonacci level holds and the price doesn’t close higher. A close below the 50-day moving average now at 1.3072 will accelerate declines towards its 20-day moving average now at 1.2931, which incidentally coincides with the low of January 25th. A break higher than 1.3244 could see the pair rise higher to test the 100-day moving average now at 1.3371.