No doubt the Spanish budget figures for 2013 have boosted sentiment, and riskier assets along with them. However, investors’ confidence would face another hurdle with the stress tests by O.Wyman on the Spanish banks. Rumours has it than the banking system would need €60-70 billion.
As of writing, the cross is up 0.13% at 1.2927 with the next resistance at 1.2971 (high Sep.25) ahead of 1.2987 (MA10d) then 1.3059 (high Sep.20) and 1.3120 (high Sep.18).
On the flip side, a breakdown of 1.2909 (hourly low Sep.28) would expose 1.2862 (MA21d) then 1.2830 (low Sep.27) and 1.2824 (MA200d).