We have seen a good fall in EURUSD in the second half of 2011, but 2012 can bring some good news. No doubt there is more downside yet to be seen in first two months of this new year but we can expect a good recovery from March onwards.
In the short term 1.2770 will act as a good support, but a major support is at 1.2580. It will take some major fundamental setbacks from Euro-zone for the EURUSD pair to cross 1.2580 on the downside. Investors should keep in mind that 1.2500 is a psychological support and many long term investors might keep their stop losses at that level. So even if it touches 1.2500 (the chances of which are rare) long term investors need not worry, the only thing they will have to do is keep a close watch on fundamentals prevailing at that time and act accordingly.
Strategy for 2012
If you believe in long term investment (or even medium term) than you can follow the strategy given below;
Buy partial at 1.2770, 1.2650, 1.2580 for a target of 1.3870, 1.4550, 1.4950.
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