EUR – Concerns Regarding Spain and Greece Limit Euro Gains

EUR/USD intraday: under pressure.

Pivot: 1.2960. Our preference: SHORT positions @ 1.295 with 1.288 & 1.286 as next targets. Alternative scenario: The upside penetration of 1.296 will call for a rebound towards 1.299 & 1.3025. Comment: the pair is rebounding but stands below its resistance.

EUR – Concerns Regarding Spain and Greece Limit Euro Gains

Uncertainties among investors regarding economic instability in Greece and Spain continued to weigh down on the euro before markets closed for the weekend on Friday. While some risk taking helped the common currency recoup losses during afternoon trading, virtually no gains were made for the day.

The EUR/USD fell more than 60 pips during the morning session to trade as low as 1.2881, before an upward correction brought the pair to 1.2938 by the end of the day. Similarly, the EUR/GBP fell more than 30 pips before staging a recovery during the afternoon session to trade as high as 0.8034, roughly the same level as the beginning of the day.

This week, in addition to a batch of significant US news, euro traders will want to pay close attention to a speech from ECB President Draghi and an Italian bond auction, both scheduled to take place on Tuesday. Investors will be watching Draghi’s speech for clues as to the current state of the debt crisis in Spain and Greece. Any optimistic statements from the ECB President could help the euro turn bullish before Friday’s crucial US Non-Farm Payrolls report.
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