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Forex pairs in this Article » EUR/USD (London) - EUR/USD has been supported and has walked back to 1.2960.

However, there are concerns over Portugal and Greece and they continue to weigh on the Euro. Portuguese cabinet resignations taking 10 year bonds much lower and pushing yields to 8 month highs above 8% into the bargain. All of this stress is spreading slowly across the periphery to area across Spanish and Italian paper too. This is weighing on EUR/USD and the crosses. The pair moved from 1.2923 from 1.2975 at the open but has since fund support and resumed 1.2960. Data wise, Italian Services PMI came in declining from 47.7 to 44.8 in June, which was worse than 47.0 expected by consensus. PMI revisions in Germany (-0.9pt to 50.4) and France (+0.7pt to 47.2) were on balance soft, contributing to a lower than expected Eurozone Services PMI at 48.3 (cons 48.6). Coming up we have the US ADP Employment report in focus.

EUR/USD support to hold

The 55 week moving average support line and the 2012-2013 uptrend and 78.6% retracement at todays lows are suspected to hold the initial test ahead of losses to 1.2796, then the 1.2740 April low. “We will remain immediately bearish while EUR/USD stays below 1.3103. We maintain a negative stance longer term while capped by 1.3414/39, the 200 week ma and the 2011-2013 resistance line”, said Karen Jones, analyst at Commerzbank.
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