EURUSD Hard to catch a falling knife

The EURUSD proved once again on Tuesday that it is a tricky beast to trade recently.  The pair appeared to be finding a bit of support in early New York trading only to push lower after Spain's debt rating was lowered shortly after the European close.  This pushed the pair through the 1.25/1.2480 support level.  Heading into the New York close the cross is drifting around the 1.2480 area.  If the pair continues its march lower the next support can be found at 1.2388.  This level represents the 1.272 fib extension from the April highs.  Resistance can still be found in the 1.26/1.2625 zone.

Sup    1.2480                     1.2388

Res    1.26/1.2625

Plan:  Standing aside at the moment.  Looking for a bounce but hard to catch a falling knife.

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