"EUR renewed 2012 minimum"(2012-05-24)
EUR renewed 2012 minimum
Today EUR/USD slid to $1.2614 renewing the year's minimum. Then euro managed to recover to $1.2650 helped by option buyers. Experts say that there is a barrier at $1.2600 with likely stops just beneath ahead of more sell stops through $1.2580.
Commerzbank notes that if we see a sustainable bearish breakthrough below $1.2624 (previous 2012 minimum), EUR/USD will head to support at $1.2530 and $1.2066. Resistance lies at $1.2750 (May 17 maximum). In the longer term the outlook for EUR/USD will remain bearish as long as it’s trading below $1.2875/1.3000.
On the fundamental part, Morgan Stanley claims that “very little is likely to come out of this summit... The pressure remains on the downside in EUR/USD and any rebounds will be sold into in this environment.”
Chart. Daily EUR/USD
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