The Eur/Usd pair moving averages are crossing; technically signalling a new down trend. The factor affecting the European currency is the current uncertainty over the Greek vote on reforms needed to secure international aid.
The currency support and resistance level were at around 1.2845 and 1.3142 respectively. At the moment the price has break beyond the support level which along with the moving average is supporting the possible downturn.
Perhaps one main factor that will put pressure on the pair will be the US election. Investor are probably considering the USD as a more secure place to invest. The US economy recovery give better peace of mind than the uncertainty over the Financial crisis in Europe.
With such a strong sell signal in place. It could be expected that the Euro currency could fall as low as 1.2669 to 1.2475. It will greatly depend on what will be expected from the US government in relation to the Fiscal Clifft.
Fiscal cliff is a term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.