Technical analysts at Forecast Pte claim that the single currency may lose its recent gains versus the greenback if it fails to overcome resistance at $1.3471. The specialists note that this level represents 38.2% Fibonacci retracement of euro’s decline from November 4 maximum at $1.4282 to the November 30 minimum at $1.2969.

As the pair EUR/USD has remained below this resistance level in the past two days, the upside seems still limited. Forecast Pte strategists note that the single currency hasn’t even retraced the 38.2% level of the recent down move regarding euro’s inability to strengthen as a bearish sign. In their view, euro may extend its November fall.

So, if the European currency keeps trading below $1.3471, it may go down to test the $1.3000 level and, more particularly, November 30 minimum at $1.2969 and the December 1 minimum at $1.2971 to August-September minimums at $1.2588 and $1.2644 respectively.



Chart. H4 EUR/USD

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