Important uptrend support in EUR/USD is being tested this morning after the sharp reversal yesterday from 1.300 following the “successful” fiscal cliff deal.
We’ve already lost major support at 1.3140/50 so a sustained break of 1.3087 would signal a medium-term top is in place.
Risk was brisk at year-end but now we are back to reality and the reality is that we are in a slow-to-no growth world with mountains of debt to be dealt with around the globe.
