FXstreet.com (Barcelona) - The bloc currency is intensifying its decline on Wednesday, bottoming in the boundaries of the 1.2240 mark as risk aversion is picking up pace.
Euro sentiment remains fragile after Bernanke’s testimony on Tuesday and softer-than-expected Construction Output during May, contracting 8.4% vs. -6.3% previous.
In other tone, German 2-yr note auctions have registered negative yields for the first time in the euro zone, at -0.06%.
The cross is now in session lows, losing 0.50% at 1.2237 with the immediate support at 1.2189 (low Jul.170 would open the door to 1.2176 (low Jul.16) then 1.2162 (low Jul.13) and 1.2151 (low Jun.29 2010).
On the flip side, resistance levels lie at 1.2317 (high Jul.17) followed by 1.2334 (high Jul.10) then 1.2365 (prior hourly low) and 1.2401 (high Jul.6).
Euro sentiment remains fragile after Bernanke’s testimony on Tuesday and softer-than-expected Construction Output during May, contracting 8.4% vs. -6.3% previous.
In other tone, German 2-yr note auctions have registered negative yields for the first time in the euro zone, at -0.06%.
The cross is now in session lows, losing 0.50% at 1.2237 with the immediate support at 1.2189 (low Jul.170 would open the door to 1.2176 (low Jul.16) then 1.2162 (low Jul.13) and 1.2151 (low Jun.29 2010).
On the flip side, resistance levels lie at 1.2317 (high Jul.17) followed by 1.2334 (high Jul.10) then 1.2365 (prior hourly low) and 1.2401 (high Jul.6).
