COZfx: EUR/USD hits session highs, still vulnerable

[kiriss5678]

COZforex: The euro rise to session highs against the dollar on Thursday after steep falls in the previous session prompted bargain buying, but sentiment on the single currency remained fragile.

EUR/USD hit 1.3074 amid European morning trade, the session high; the pair subsequently consolidated at 1.3063, gaining 0.22%. COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.2970, and a drop through could take

it to the next support line of 1.2886. Meanwhile, the pair is predicted to find its first resistance at 1.3170, and a rose through could take it to the next resistance line of 1.3286.

Demand for the euro continued to be supported after the Bank of Japan’s aggressive easing program caused the yen to weaken broadly.

Spain saw borrowing costs fall to the lowest level since September 2010 at an auction of 5 and 10 years government bonds on Thursday. Meanwhile, France auctioned 5 year bonds at record low yields as sentiment on euro zone bonds remained

supported by BoJ easing.

But the single currency remained under pressure during concerns over the outlook for economic growth in the euro zone and the risk of a fresh flare up of the region’s debt crisis.

The euro declined sharply against the dollar on Wednesday after European Central Bank Governing Council member Jens Weidmann said the bank could cut interest rates if economic data indicated that it was warranted.

The US was to release official data on initial jobless claims and the Philly Fed manufacturing index later in the trading day.

(COZ forex UK)