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25 Mar 2013
Forex: EUR/USD supported by 1.2870/80
FXstreet.com (Barcelona) - The bloc currency plummeted to the area of 1.2875/80, where the 200-day moving average helped to contain the selling pressure. The comments by Papadoloulos regarding the likeliness of an exit of Cyprus have intensified the downside, coupled with market chat citing that an Italian downgrade would be in the pipeline.
Chritopher Vecchio, Currency Analyst at DailyFX, commented, “Concerns of a bank run are warranted in my opinion, and the spill over to sentiment in other European countries is inevitable… As we saw in June 2012, the bailout of Spain’s banks only produced three days of upside in the Euro – I would be shocked if serenity persisted past Wednesday".
At the moment, the cross is down 0.60% at 1.2884 with the immediate support at 1.2857 (low Mar.20) ahead of 1.2844 (low Mar.19) and finally 1.2827 (low Nov.22).
On the upside, resistance levels line up at 1.3107 (high Mar.15) followed by 1.3135 (high Mar.8) and then 1.3163 (high Feb.28).
Chritopher Vecchio, Currency Analyst at DailyFX, commented, “Concerns of a bank run are warranted in my opinion, and the spill over to sentiment in other European countries is inevitable… As we saw in June 2012, the bailout of Spain’s banks only produced three days of upside in the Euro – I would be shocked if serenity persisted past Wednesday".
At the moment, the cross is down 0.60% at 1.2884 with the immediate support at 1.2857 (low Mar.20) ahead of 1.2844 (low Mar.19) and finally 1.2827 (low Nov.22).
On the upside, resistance levels line up at 1.3107 (high Mar.15) followed by 1.3135 (high Mar.8) and then 1.3163 (high Feb.28).