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Forex pairs in this Article » EUR/USD (Edinburgh) - Softer than expected Services PMI prints in the euro area are hurting the sentiment surrounding the shared currency, pushing EUR/USD to the region of 1.2920 on Wednesday.

EUR/USD downside accelerated

Only Spain and France managed to put some colour to today’s Service PMI prints, while Germany’s and the EMU’s disappointed investors, intensifying the bearishness. Adding to the selling interest, the recent events in Portugal and Greece spooked traders, echoing in higher yields in the debt markets, ahead of the ECB gathering due tomorrow. In the opinion of Derek Halpenny, European Head of Global Markets Research at BTMU, “Could we be slowly moving toward the need for OMT as the German election fast approaches in September? This scenario will frighten investors and is a building downside risk for the euro”.

EUR/USD levels to consider

As of writing, the pair is losing 0.36% at 1.2931 with the next support at 1.2916 (support line) ahead of 1.2885 (Fibo 76.4%) and finally 1.2843 (low May). On the flip side, a breakout of 1.3078 (high Jul.2) would bring 1.3103 (high Jun.28) and then 1.3115 (MA30d).
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