Forex: EUR/USD still pressured; quiet above 1.2900

FXstreet.com (San Francisco) - The EURUSD last trades at 1.2910 as it inches back to levels above 1.2900 following a 40-pip downside gap weekly opening. Spot, however, remains under pressure on the back of EUR weakness this Monday as the German economy could be on the brink of a recession, and as Italian PM Mario Monti said over the weekend he intends to resign after the 2013 budget is passed.

According to Valeria Bednarik, Chief Analyst at FXstreet.com, EURUSD may continue its attempt to fill the gap in the hours and sessions ahead, "However, failure to overcome 1.2940 or a break below 1.2880, will likely lead to a bearish day, with 1.2820 as possible bearish target for today," she says in a research note. Beyond the 1.2940 mark, EURUSD resistance levels may be found at 1.2970 and 1.3000, while should price manage to break below mentioned 1.2880, further support is noted at 1.2845 and 1.2820.