EUR-USD down after Bernanke comments june 7 2012

forex trading outlook today - EUR-USD down after Bernanke comments june 7 2012 : After reaching a high of 1.2624 boosted by the decision of China to cut rates, EUR/USD lost momentum and retraced its intraday gains as Bernanke testifies before the parliament.

Fed's Chairman said the euro crisis poses 'significant risks' to US financial system, and added that the Fed remained 'prepared to take action' to protect the US economy and financial system if stresses on the financial system 'escalate', giving no strong signals of further quantitative easing.

As Bernanke refrains to hint at QE3, the dollar strengthens across the board. EUR/USD has dropped more than 60 pips within the last minutes, sliding below the 20-hour SMA to the 1.2560 area, where it trades at time of writing, down 0.2% on the day.

In terms of technical levels, EUR/USD sees immediate supports at 1.2550, 1.2510 and 1.2485, while she places resistances at 1.2625, 1.2660 and 1.2700.

Meanwhile, the rating agency Fitch said it would cut US AAA rating if there is no credible fiscal consolidation plan in 2013.

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