FXstreet.com (Barcelona) - The single currency remains glued to the psychological support/resistance at 1.2800 on Tuesday, as Fed’s B.Bernanke is giving his speech. Bernanke has emphasized that the ‘fiscal cliff’ poses a significant threat to the US economy, adding at the same time that the Federal budget edges to unsustainable levels. He also remarked that the recovery of he housing sector remains moderate and the labor market evidences some sluggishness. He later affirmed that the Fed would see a sustainable recovery before any rate hike.
As of writing, the cross is now losing 0.10% at 1.2800 and a dip below 12747 (MA10d) would bring 1.2730 (low Nov.19) and finally 1.2691 (low Nov.16).
On the upside resistance levels lie at 1.2836 (MA21d) followed by 1.2876 (high Nov.7) and then 1.2950 (high Nov.2).