Forex: EUR/USD stabilizing as European morning ends

FXstreet.com (Barcelona) - The EURUSD remains under pressure today as investors take their profits now with the Fed policy decided and the new born bank supervisor of up to 200 eurozone lenders approved by the finance ministers. The pair touched 1.3100 on the European opening right before falling across the chart and being held by 1.3050 area (low at 1.3043).

The SNB kept its policy unchanged, with rates at 0% and defending the EURCHF peg at 1.20, and Chairman Jordan expects the euro area to emerge from recession next year. Also in Switzerland, SECO cut its economic forecast for 2013 to 1.3% from the previously estimated 1.4%, maintaining its outlook of 2012 GDP growth at 1%.The IFO institute revealed its new forecast for Germany growth, expecting a -0.3% contraction in Q4, a +0.2% growth in Q1 2013 and +0.7% in 2013.

The Spanish government sold ¬2.024 of 2015 (¬681M at 3.358 - from 3.9%), 2017 (¬803M at 4.20% - from 4.766%) and 2040 (¬540M at 5.893% - from 4.782%) debt, beating the targeted ¬1-2B. Italy also went to the well and sold a total of ¬4.224B, mostly of Dec 2015 BTP (lower yields at 2.5%, from 2.64%), but also of March 2026 BTP (yield at 4.75%).

"Corrective actions on overbought hourlies were so far contained by ascending 20 day EMA at 1.3055, with any stronger dips, expected to find ground above 1.3020/00 support zone", wrote Windsor Brokers analyst Slobodan Drvenica.