FXstreet.com (Córdoba) - The euro weakened slightly on Monday and edged lower after Finland and the Netherlands opposed a plan for the ESM to buy government bonds in the secondary market. However, positive sentiment and declining Spanish and Italian yields have given the common currency some support.
EUR/USD rose to a high of 1.2666 during the European session, but failed to sustain gains and pulled back, dropping to a low of 1.2606. At time of writing, EUR/USD is quoting at the 1.2610 area, down 0.4% on the day.
From a technical view, Valeria Bednarik, analyst at FXstreet.com, notes that below 1.2610, the bearish run may extend near 1.2570, 23.6% retracement of this year fall and strong static support level: "buyers will likely surge in that area, pushing price back above 1.2600 if reached. Lose of 1.2570, should signal further slides with price then looking for a test of the 1.2520 price zone", said the analyst. "From current levels, only above 1.2680, the pair can regain upward momentum and extend its rally near 1.2745 past June high".
EUR/USD rose to a high of 1.2666 during the European session, but failed to sustain gains and pulled back, dropping to a low of 1.2606. At time of writing, EUR/USD is quoting at the 1.2610 area, down 0.4% on the day.
From a technical view, Valeria Bednarik, analyst at FXstreet.com, notes that below 1.2610, the bearish run may extend near 1.2570, 23.6% retracement of this year fall and strong static support level: "buyers will likely surge in that area, pushing price back above 1.2600 if reached. Lose of 1.2570, should signal further slides with price then looking for a test of the 1.2520 price zone", said the analyst. "From current levels, only above 1.2680, the pair can regain upward momentum and extend its rally near 1.2745 past June high".
