The single currency fixed its positions against the greenback on Friday after the news that Spain is negotiating the terms of next tranche of financial aid with the European Commission appeared on market.
The session closed in good to the euro which climbed 13 points against the dollars, trading volatility was 93 points.
Fundamental review:
We did not get any fundamentals on Friday.
Technical Analysis:
Despite fierce attempts of the pair to resume uptrend, the trading is still in downward price channel. The lower limit of this channel is placed at Friday’s low at 1.2955 and today’s minimum of 1.2927. The upper limit of the channel crosses Friday’s high at 1.3047.
1.2927 level, which was tested last week and managed to outstay bears’ pressure, is supporting the pair. In case of its overcoming, the EUR/USD downtrend will continue to 29 figure from which the bears can target 1.2871 level.
20-day moving average, which tried to fix above 60-day moving average on Friday, is heading downwards and indicates a possible EUR/USD fall in short-term. 60-day moving average which is placed in the area of 1.2086, may serve as additional resistance in case of correctional growth of the pair.
In case the ascending movement resumes, the first resistance level will be placed at 1.2961 from which the pair may head to 1.2985 and then may test again 1.3013. The main target for bulls is 1.3048.
Bollinger Bands are parallel to each other, although, they maintain market’s volatility which is good for the bears. The trading is performed mainly in the lower part of the channel and the average line placed at 1.2977 serves as dynamic resistance level.
MACD indicator, which came closer to zero level during the Friday’s trading, moved to the sell area today which shows the presence of bears on the market. In case of further decline together with the breakthrough of support level and confirmation of this breach on the indicator, I recommend to open short positions.

Key support and resistance levels for today:
Support levels: 1.2927, 1.2903, 1.2871
Resistance levels: 1.2961, 1.2985, 1.3013
60-day Moving Average (yellow line) - 1.2986
20-day Moving Average (green line) - 1.2977