EUR/USD regains the 1.2500

[John Starks]

FXstreet.com (Barcelona) - EUR/USD is currently at 1.2505 bouncing from daily lows at 1.2470, 10 pips above 0.38 Fibo retrace of latest daily up leg from beginning of June 1.2286/1.2749. The pair is lower by -0.51% from previous weekly close last Friday, amid a new risk aversion move in the markets, with Spanish yields on the rise again, and equities falling. VIX index rose a generous +12.53% for the day.

 

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “the pair enters Asian session below a bearish 20 SMA while indicators hover around their midlines, suggesting the selling pressure still dominates the scene; in the 4 hours chart indicators turned flat near oversold levels, and 20 SMA heads south well above current price, which also supports limited upside, as long as price remains capped below 1.2520 price zone,” the analyst concludes.

 

Support levels are located at: 1.2470 1.2440, and 1.2400, while resistance levels are seen at: 1.2520 1.2550, and 1.2585.