Forex: Next bearish target for EUR/USD at 1.2880 - V.Bednarik

FXstreet.com (San Francisco) - EURUSD extended its retreat from the 1.3120 resistance area Thursday, shedding 0.8% on the day to close NY at 1.2965. The drop was driven by euro weakness after the European Central Bank lowered its growth and inflation forecasts for the euro zone next year, fueling expectations of an interest rate cut.

From Valeria Bednarik, Chief Analyst at FXstreet.com: "For current Asian session, the EURUSD hourly chart shows price in the 1.2950/70 range, with indicators aiming slightly higher from extreme oversold levels, not actually pointing for a correction higher. In the 4 hours chart strong bearish momentum persists, supporting further falls. Next big challenge for bears, comes at 1.2880 static support zone."

The market currently stands unchanged in early Asian trade, and tight ranges are expected as participants remain sidelined ahead of the US employment data later in the global day; a speech by ECB President Draghi will also be key event risk for EUR during the European session. Ms. Bednarik identifies support levels at 1.2945, 1.2910 and the mentioned 1.2880 zone, while beyond 1.2970 resistance, further levels lie at 1.3000 and 1.3040.