Late in the US session, the Federal Reserve brought little new to the table in the release of the latest FOMC minutes, stating that additional monetary policy may be needed if the recovery takes a negative turn, which, in the end, disappointed QE3 watchers. On the Greek front, the ECB stopped its monetary support with some Greek banks, triggering another round of demand for the safe haven.
From a technical perspective, "In the 4 hours chart, the bearish momentum is still strong as indicators head again south after correcting extreme oversold readings," says Valeria Bednarik, Chief Analyst at FXstreet.com. "The yearly low, set early January at 1.2625 remains as main target for the pair."
So far in Asia, EUR/USD is consolidating around the 1.2720 level, with resistance levels noted at 1.2780, 1.2810 and 1.2845. To the downside, ahead of the mentioned 1.2625 target, support levels lie at 1.2705 and 1.2680.
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