Rising and Spanish yields hurt the Euro
EmailThe euro fell to a low of $1.3609 on Tuesday as Europe continues to contain the region's debt crisis after an increase in Italian and Spanish bond yields. The euro had gained during recent gains as a transformation in leadership in Italy and Europe were welcomed by the markets, however, optimism since was tempered. The dollar jumped around 40 pips against the Japanese yen, to hit a high of 77.51, but later gave back most of its gains as traders believe that the move was likely brought on by a big-lot flow and forestall-loss buying, in preference to a currency intervention. Traders remain on watch alert as they expect an intervention by the BoJ if the yen starts to rise sharply.
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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 |
1.3700 |
1.5950 |
0.8610 |
77.90 |
106.00 |
1.2465 |
12192 |
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Resistance |
1 |
1.3650 |
1.5915 |
0.8606 |
77.30 |
105.35 |
1.2415 |
12143 |
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Market |
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1.3611 |
1.5900 |
0.8565 |
77.12 |
105.00 |
1.2395 |
12050 |
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Support |
1 |
1.3590 |
1.5870 |
0.8545 |
76.82 |
104.75 |
1.2320 |
12000 |
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Support |
2 |
1.3580 |
1.5850 |
0.8525 |
76.60 |
104.00 |
1.2306 |
11937 |
Trade Idea
EURJPY
The market runs the chance of breaking below 104.75 support level so as to trigger an extra drop towards 104.00 and probably 103.32. Trading in this currency must be with a decent stop loss. Resistance seen at 105.35 and 106.000
