By Fast Brokers – The EUR/USD’s slide has continued and the currency pair has been driven below our key medium-term downtrend again, throwing March’s uptrend into question. The EUR/USD is currently trading above some important supports and the currency needs a topside boost soon to avoid a more protracted selloff. The EUR/USD came under further selling pressure yesterday after Merkel implied that the IMF may be the best route for Greece. Additionally, rumors spread that the Fed may raise the rate again at its emergency window. The concept of monetary ordering in the U.S. combined with division in the EU has resulted in a swift and hefty pullback in the EUR/USD. Sarkozy made the waters even murkier today by reiterating France’s opposition to IMF intervention and confirmed the EU’s support for Greece. Hence, the two largest economies are squaring off, making next week very interesting since Greece provided a one week timeline for a solution. Psychological pressures have come to the forefront due to the lack of economic data today, though the EU will re-enter the fray on Tuesday with the release of its Flash PMI set along with Germany’s Business Ifo Business Climate figure. Meanwhiel, it will be interesting to see whether the EUR/USD can hold its psychological 1.35 level land March lows.
Technically speaking, the EUR/USD faces multiple downtrend lines along with intraday 2/26, and 3/3 highs. As for the downside, the EUR/USD has several uptrend lines serving as technical cushions along with 3/5 and 2/23 lows. Meanwhile, the psychological 1.35 area could serve as a solid technical cushion should it be tested.
Present Price: 1.3543
Resistances: 1.3552, 1.3571, 1.3591, 1.3610, 1.3626, 1.3643
Supports: 1.3527, 1.3513, 1.3498, 1.3483, 1.3471, 1.3457
Psychological: March and February Lows, 1.35
(click chart to enlarge)
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