Friday, 6 January 2012

why EUR/USD down today january 6 2012

forex trading outlook today - why EUR/USD down today january 6 2012 : Selling pressure on the EUR/USD remains heavy on Friday, with the pair nearing the 1.2700 psychological level during the NY session, following Hungary's downgrade by Fitch Ratings and better-than-expected US employment data.

Following a brief bounce, a new leg down has led EUR/USD toward a fresh 15-month low of 1.2705 in recent dealings where the pair has found interim support. At time of writing, the cross is quoting at the 1.2715 area, recording a 0.6% loss on the day.

From a technical view, Valeria Bednarik, analyst at FXstreet.com notes that the pair holds a strong bearish tone both in 1 and the 4 hours chart. "Stocks negative mood across the world support the dollar bullish case, suggesting a break lower towards 1.2660 for the EUR/USD".

Bednarik sees next support levels at 1.2690 and 1.2660 while she locates resistances at 1.2760, 1.2800 and 1.2845.

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