According to ECB’s Coene, the Franco-Belgian bank Dexia is in dire need of urgent recapitalization. Europe has been under increasing market pressure, while the sovereign government has continued to weigh the option of formally applying for EFSF support to a multiple of entities.
As investor flight bolsters the USD, the cross is trading near session highs, presently settling at 0.9802, appreciating at a rate of +0.43% above its opening levels. The technical analyst team at ICN.com points to the next resistance levels at 0.9835, 0.9880, and ultimately 0.9900. On the downside, supportive means will be enabled after crossing the threshold of 0.9775, followed by 0.9720, and finally 0.9700.