Forex: Euro jitters remain, trading soft in Asia down 10 pips

Fri, Dec 11 2009, 03:03 GMT
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FXstreet.com (London) - Dubia World, the state owned corporation, signalled that all the fallout from the credit crisis my not yet have come to light. Indeed, shortly after Greece was downgraded by ratings agencies, amid political and social unrest. Now the amrket is jittery over the Eurozone as Spain has recently had its outlook downgraded. Should a major European state default it could see a large move back to risk aversion. It should be noted though that this has not yet happened.

Having withdrawing significantly to the downside in the past fornight, the pair has traded rangebound in recent days, look for bigger cues, and further developments around the shaky states. In the Asian session the EUR has traded largely soft against the Dollar, drifting down just 10 pips from the open and currently trading at 1.4718/20.

We see primary resistance as 1.4750 followed by 1.4780. On the downside we have support at 1.4710 and then 1.4680. These levels have been derived from moving averages in this excellent technical report.

A moving average indicates the average localisation of the price based on a number of previous sessions and can be a powerful tool in predicting currency movements.

EUR/USD

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