The EURUSD gapped down Sunday night and has traded into support defined by the 50% retracement of the rally from the 2012 low (low is a few pips above the retracement), late November low, and December low. Aside from the presence of this support, it's almost always better to fade FX gaps than chase them. I'd like to see the EURUSD hold 1.2875 on a daily closing basis before committing to the long side (again). Updates of course will be disseminated via Twitter @JamieSaettele and through the Daily Technicals.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.