EUR/USD: Watch 1.2750

by Admin

The EUR/USD trades around 1.2800, hit by lousy PMI readings all across the EU over the last few days. Earlier today, German data missed also expectations, with Markit services PMI falling from 54.7 past month to 50.9. But that’s just the top of the huge iceberg the EU crisis is. Unemployment stands at record highs, countries continue collapsing and requiring rescues, and the Central Bank has now little room to move. 

Anyway, the Central Bank is expected to be dovish, and market has already priced in a non optimistic stand. Is always the surprise what moves the market and not much surprises can be expected today. The level to watch is the 1.2750 low set past March, as a slide below should anticipate a downward continuation up to 1.2710 area in the short term, with scope to extend towards 1.2660 November 2012 low. Advances may found sellers in the 1.2880/1.2910 area, probable top for today.

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