The EUR/USD break lower this European morning, weighted by increasing pessimism among investors, and helped by summer low volumes. With Greece unemployment of the rise, widening deficit in the UK and EU authorities verbally fighting whether or not the ECB must resume bond buying, investors are rushing back towards safe haven greenback. With no headlines behind the movement, the EUR/USD fell to a daily low of 1.2310 so far, gaining bearish momentum according to the 4 hours chart: price remained capped by 20 SMA during past Asian session, while indicators head south below their midlines. The increasing bearish tone and the limited pullback seen so far, suggest another selling round is just around the corner, with the pair eyeing 1.2250 on a break below the 1.2300 level.
Immediate resistance comes now at the 1.2340 price zone, and pullbacks to the area will be seen as selling opportunities now. Only an acceleration above 1.2350 may open doors for an upward movement towards 1.2390/1.2400, quite unlikely if market mood continues to be negative.View Live Chart for EUR/USD