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Forex: EUR/USD barely above the 1.2500 abyss


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FXstreet.com (Barcelona) - EUR/USD is ending the Asian trade in the middle of a new round of panic selling on risk aversion, with USD index at fresh 20 month highs around 82.40, USD stronger even against Yen. EUR/USD sits near session lows at 1.2526 as last, 7 pips above mentioned lows, and 11 above fresh 2012 lows made yesterday. All local markets trade in the red except Kospi about flat, and gold also at session lows $1552.

The London session ahead shows a soft agenda all day long, previous a 3-day weekend in most parts of the world, including Europe and the US with markets closed on Monday. Gfk German consumer climate will be out at 06:00 GMT, followed by Italian retail sales at 08:00 GMT and no major EU sovereign debt auctions on schedule. Chatter on Eurobonds will also probably give some headlines, as one from Bloomberg from this morning in Europe: “Monti: can get Germany back euro bonds,” the news agency said.

Immediate support to the downside for EUR/USD comes at very recent session and yesterday lows, lowest for 2012 and since July 2010 at 1.2517/14, followed by July 06 2010 lows at 1.2478, and June 06 2010 highs at 1.2467. For the upside, closest resistance comes at Thursday's lows 1.2544, followed by recent session's highs 1.2553 and yesterday's highs 1.2620.

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Guest Dominator4fx

In the coming week it apeears the a correction will be seen in the EURUSD when the other member countries have pledged their support for the Greece and the new elections in the Greece will be a crucial deciding factor.

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