Forex: EUR/USD breaks down after hitting 1.2560

FXstreet.com (Barcelona) - The 1.2560 area is serving as a barrier against further upside today, with many attempts made since late Asian session. After some market jittery on the US jobless claims and personal income and spending, the new attempt at breaching above 1.2560 failed again and provoked a sell off still ongoing.

Lower expectations of a dovish speech from Fed's Bernanke at Jackson Hole tomorrow, after yesterday's release of Fed's Beige Book, opened doors to profit taking. The EURUSD has already fallen off to 1.2526 session low and the market is still pressuring the wound.

"Although yesterday's dip to 1.2519 signals, that the bullish momentum is fading, but the overall outlook on the mid-frames is still positive, for a break through 1.2589, en route to 1.2690", wrote Deltastock.com analyst Stoyan Mihaylov, pointing to risks of a drop to 1.2430 if the pair fails at 1.2520.