Forex: EUR/USD extends lower on Cyprus and ECB's Coene
Forex pairs in this Article »
EUR/USD
FXstreet.com (Barcelona) - Supposedly, the EURUSD had found support at 1.3450 during Asian hours, but after a bounce to 1.3468, the market started to sell off, a momentum that is still ongoing. As of writing, the pair has reached as low as 1.3425.
Recent headlines talk about potential risks to euro stability from Cyprus, with the German Finance Ministry saying that the country must be systemically relevant to get aid from the Troika.
ECB's Coene said that, ideally, the OMT programme would never be used. He added that there is no currency war, yet.
As the EURUSD broke higher from its range 1.3250-1.3400, an upside bias is maintained for gains towards tough long term resistance at 1.3485/1.3562 (2012 high, a double Fibonacci retracement, the 200 week moving average and the 55 MONTH moving average). "This is a tough band of resistance and we look for this to hold the topside and provoke failure", wrote Commerzbank analyst Karen Jones, pointing to nearby support at 1.3250.
Recent headlines talk about potential risks to euro stability from Cyprus, with the German Finance Ministry saying that the country must be systemically relevant to get aid from the Troika.
ECB's Coene said that, ideally, the OMT programme would never be used. He added that there is no currency war, yet.
As the EURUSD broke higher from its range 1.3250-1.3400, an upside bias is maintained for gains towards tough long term resistance at 1.3485/1.3562 (2012 high, a double Fibonacci retracement, the 200 week moving average and the 55 MONTH moving average). "This is a tough band of resistance and we look for this to hold the topside and provoke failure", wrote Commerzbank analyst Karen Jones, pointing to nearby support at 1.3250.
Free Annual Reports
