The pair pared losses made earlier in the session and gradually moved into positive territory as shorter dated implied vols fell given the barrier decay, also indicating certain degree of unwillingness by market participants to bet against the ECB who pledged to do whatever is necessary to preserve stability in the bloc. In terms of technical levels, supports are seen at the 200DMA line at 1.2822, 1.2800 and then at the 21DMA lower Bollinger level at 1.2797. On the other hand, resistance levels are seen at 1.2934 and then at the 21DMA line at 1.2959.
The pair tracker EUR/USD throughout the session and as a result settled higher, as broad based USD weakness offset any immediate uncertainties surrounding the never-ending Eurozone sovereign debt crisis. In terms of technical levels, supports are seen at 1.5975/23 and then at the 55DMA line at 1.5915. On the other hand, resistance levels are seen at the 10DMA line at 1.6108 and then at the 21DMA line at 1.6157.
The pair settled in minor positive territory, as policy makers from Japan continued their verbal rhetoric against further JPY appreciation. Still, it is unlikely that an immediate intervention in the FX market will take place and the BoJ will have to contend with an overvalued currency in the nearterm. In terms of technical levels, supports are seen at 78.15/08. While resistance levels are seen at 78.65/76 and then at 78.88.