Forex: EUR/USD nose dives below 1.3300 on European opening
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EUR/USD
FXstreet.com (Barcelona) - The European opening triggered a plunge of the EURUSD, with the pair falling extensively below the 1.3350 zone and failing to hold at the 1.3300 handle. Downside pressure has taken the pair to as low as 1.3271 so far. According to Forexlive.com analyst Gerry Davies, this added pressure comes from European banking losses, namely in Germany and Italy.
Investors will be eyeing the German and EMU economic sentiment survey by ZEW, due at 10:00 GMT. "Given the positive start to the year for financial markets, it probably won't be long before we make our way back to the index's low-20s highs from last year", wrote TD Securities analysts.
Both PortugalandIrelandhave formally requested an extension of their EFSF loan maturities to reduce their borrowing costs, which is likely to be discussed today, the last day of the Eurogroup/Ecofin meeting.
"Above 1.3405 we look for gains towards tough long term resistance at 1.3485/1.3560 this is the location of the 2012 high, a double Fibonacci retracement the 200 week moving average and the 55 MONTH moving average", wrote analyst Karen Jones, looking for this to hold the topside and provoke failure. On the downside, support is at 1.3250/00: "below here would leave the market simply ranging and heading back to the base of the channel at 1.3091", Jones added.
Investors will be eyeing the German and EMU economic sentiment survey by ZEW, due at 10:00 GMT. "Given the positive start to the year for financial markets, it probably won't be long before we make our way back to the index's low-20s highs from last year", wrote TD Securities analysts.
Both PortugalandIrelandhave formally requested an extension of their EFSF loan maturities to reduce their borrowing costs, which is likely to be discussed today, the last day of the Eurogroup/Ecofin meeting.
"Above 1.3405 we look for gains towards tough long term resistance at 1.3485/1.3560 this is the location of the 2012 high, a double Fibonacci retracement the 200 week moving average and the 55 MONTH moving average", wrote analyst Karen Jones, looking for this to hold the topside and provoke failure. On the downside, support is at 1.3250/00: "below here would leave the market simply ranging and heading back to the base of the channel at 1.3091", Jones added.
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