France to be the next Euro-crisis target?
EmailThe euro hit a 5-week low against the dollar and the yen on Wednesday, because the euro zone debt crisis could cause France to lose its top rating, as French bond yields came stressed, hitting euro zone highs. The eur/usd fell to a low of $1.3435 while the eur/jpy hit a low of 103.57. Italian 10 year bond yields were another time above 7%, indicating that even a brand new government did not calm the markets about Italy's long-term political and economic future. Speculation is commencing to rise that the ECB will obviously take policy action buying more government bonds and cutting rates, possibly even before the following policy meeting on 8th Dec. The Bank of Japan didn't surprise markets by keeping its overnight target rate unchanged at 0-0.1% and never announcing any new monetary easing steps.
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Technical Analysis |
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EUR/USD |
GBP/USD |
EUR/GBP |
USD/JPY |
EUR/JPY |
EUR/CHF |
DOW |
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|
Resistance |
2 |
1.3595 |
1.5930 |
0.8600 |
77.50 |
104.80 |
1.2460 |
12135 |
|
Resistance |
1 |
1.3560 |
1.5870 |
0.8572 |
77.30 |
104.50 |
1.2420 |
12000 |
|
Market |
|
1.3450 |
1.5755 |
0.8530 |
77.00 |
103.65 |
1.2375 |
11950 |
|
Support |
1 |
1.3400 |
1.5680 |
0.8500 |
76.90 |
103.25 |
1.2300 |
11915 |
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Support |
2 |
1.3370 |
1.5630 |
0.8480 |
76.82 |
102.75 |
1.2261 |
11880 |
Trade Idea
EURUSD
The pair broke below its 1.3490 support level which signals that bears remain firmly in focus and any retarcement inside the pair may be seen as a a selling opportunity as te pair will in all probability aim towards 1.3400 and doubtless 1.3370. Resistance now at 1.3560.
