Asian session has brought no much relief to the falling Euro, with Chinese slowdown weighting across the board: disappointing readings in the local trade balance, with exports shrinking had maintained market in risk aversion mode since early opening. Things are no better in Europe, after German PM stated the global recovery remains fragile, expecting local economy to have growth moderately in Q2. Sentiment is negative this Friday as dollar gains pace also against other rivals. For the EUR/USD, the pair saw a fresh low a few pips below yesterdays’ one so far at 1.2261, and bounce from the level has been pretty shy so far, as market players have a hard time to find a reason to buy the common currency. The bearish tone remains strong in this 4 hours chart, with price stalling right above 1.2250 static support level, which converges with the 61.8% retracement of the latest short term bullish rally: if the level gives up, selling pressure will likely accelerate, with immediate target at 1.2200/20 area, ahead of 1.2160 price zone.
To the upside, 1.2300/10 comes as immediate resistance area, and only sustained gains above will prevent the pair to extend its bearish run today. 1.2330/40 area however, will likely hold.View Live Chart for EUR/USD