Forex: EUR/USD extends losses on Greece

FXstreet.com (Barcelona) - A disastrous industrial production report points to an annualized drop from +2.7% to -7.3% in September in Greece, while the CPI inflation report grows higher than expected, from +0.9% to +1.6%. The Harmonized CPI also beat consensus, from +0.3% to +0.9%.

Greece continues to trace its recessive path. Earlier this week, The Parliament approved the austerity bill worth ¬13.3B over two years while people were rioting in the streets. A EU official confirmed that the decision over the ¬31.3B aid tranche to Greece will not happen on November 12, as the finance ministers want to take a look at Troika's report first. The Greek deadline for insolvency approaches.

The EURUSD pressed lower and reached 1.2715 low, getting closer to the 1.2700 psychological level. "Yesterday saw the market trade through the 1.2738 Fibonacci retracement, however we await a close below this level to signal that another leg lower is underway", wrote Commerzbank analyst Karen Jones, pointing to resistance at 1.2881. "We suspect that the 1.2483 target is achievable by the end of this month", Jones added.