Forex: EUR/USD nears 1.2800 as European crisis deepens

[John Starks]

FXstreet.com (Buenos Aires) – US opening brought another round of risk aversion, as indexes fell to fresh 3-month lows. S&P reached 1333.25 so far, while DJIA trades barely above the daily low set at 12627, on fears Greece will finally leave the Euro zone. The EUR/USD trades near the 1.2800 mark, at its lowest level since early January this year.

According to Valeria Bednarik, FXstreet.com chief analyst, “the hourly chart showing price below a bearish 20 SMA while indicators lead lower below their midlines. The 4 hours chart shows also a strong bearish tone, with RSI indicator accelerating below 30. Key support comes at 1.2760, a daily ascendant trend line coming from early May 2010.”