FXstreet.com (Córdoba) - The euro extended losses against the dollar and touched a fresh 2-year low as risk aversion intensified after the Spanish stock market regulator banned short-selling stocks for three months amid volatility in the market.
The euro was already under pressure amid mounting concerns Spain would need a full bailout from the troika as more regional economies seek for central government aid. Meanwhile, stress in the debt market won't ease as the Spanish 10-year bonds yields remain above the sensitive 7.0% level.
EUR/USD broke below the 1.2080 area and fell to a fresh low of 1.2067, last seen Jun 11, 2010. At time of writing, EUR/USD is trading at the 1.2075 area, recording a 0.6% loss on the day.
In terms of technical levels, below 1.2067 next supports could be faced at 1.2040 and 1.2000. On the upside, immediate resistances are seen at 1.2100 and 1.2135 ahead of the 1.2155/60 area.
The euro was already under pressure amid mounting concerns Spain would need a full bailout from the troika as more regional economies seek for central government aid. Meanwhile, stress in the debt market won't ease as the Spanish 10-year bonds yields remain above the sensitive 7.0% level.
EUR/USD broke below the 1.2080 area and fell to a fresh low of 1.2067, last seen Jun 11, 2010. At time of writing, EUR/USD is trading at the 1.2075 area, recording a 0.6% loss on the day.
In terms of technical levels, below 1.2067 next supports could be faced at 1.2040 and 1.2000. On the upside, immediate resistances are seen at 1.2100 and 1.2135 ahead of the 1.2155/60 area.
