EUR Trading Outlook
The Euro (EUR) the EUR/USD fell to 1.3150 as the losses mounted overnight after both the Chinese and Eurozone manufacturing surveys fell sharply and stock markets slumped. EUR/AUD was the exception using the commodity pullback to gain against the risky Aussie and this helped contain the major’s losses. Concern is turning towards Portugal and Spain with a Major Portugal strike highlighting popular opposition to government austerity measures.
The Euro (EUR) some negative news from the Eurozone regarding Spanish banks exposure to Portugal inspired the EUR/USD reversal from 1.3280 to 1.3180. With US stocks also under pressure the EUR/JPY tested Y110 with the USD/JPY pullback. The outlook is for more range trading but the immediate downside is seen limited.
The Euro (EUR) the EUR/USD was strong ignoring the Chinese concerns that dominated the Asian session of trading. Support was seen at 1.3180 and we saw a move back to 1.3250 and the EUR/JPY kicked on above Y110. EUR/AUD was the big mover up above 1.2500 and rocketing to 1.2600.
The Euro (EUR) the Euro broke above 1.3180 resistance and is now in range of the 1.3300 resistance zone which will prove tougher then the smaller resistances in recent sessions. The EUR/JPY broke above the Y110 level as widely expected with the trend firmly in place now with aggressive targets going forward. Traders are suggesting that central bank diversification is supporting the Euro on many fronts and while the Eurozone Debt crisis is not completely behind us there is less trader focus on the potential downside risks.
The Euro (EUR) after surviving the 1.3000 test during the Asian session the single currency reversed and we saw a rally higher into Europe back above 1.3100 in a positive day for range traders. The next resistance is close at 1.3125 and if broken then would confirm the downside pressure is over for now. The SNB held and failed to inspire more EUR/CHF buying which eased back under 1.2100.
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