Market is all about risk aversion today, with the dollar and the yen up against all rivals, and the Euro getting hit by protests in Spain and Greece against austerity measures. The focus however, is Spain after PM Mariano Rajoy finally said what the market know, that he was ready to seek a new rescue package for his troubled country but only if its debt financing costs remain too high for too long; at the time being, Spanish yields are up to 6%. 

There is one risk factor that may affect current trends, the US New Homes Sales later in the US session, but with the EUR/USD below 1.2880, and having failed to regain the 1.2900 mark in its latest move, the bearish potential increased: the pair is set to extend its slide. Technical readings in the 4 hours chart support the fundamental bias, with indicators heading south in negative territory, and price well capped below both, 20 SMA and the descendant trend line coming from 1.3172 high; the pair has set a daily low at 1.2846 and renewed selling interest below the level, will likely push the pair down towards the 1.2740/50 area, next strong support as per being the 38.2% retracement of the latest daily bullish leg. 

Immediate short term resistance comes at 1.2900/10, followed later by mentioned trend line, today around 1.2940: only steady gains above this can erase the negative bias for today. 

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