Forex: EUR/USD plunges on Greek aid call delays

FXstreet.com (Barcelona) - The market is giving much importance to the 1.2737 area as it is the lowest price of yesterday's daily candlestick. After trading in a back and forth manner during the US session, but relatively higher from the NY opening where it printed the daily low at 1.2717, the EUR/USD is now at a plunge and getting back to its lows. The fall may be due to news that the EU ministers call to aid Greece will be delayed for weeks.

The ECB kept the refi rate unchanged at 0.75% and the uneventful Draghi press conference showed much uncertainty in regard to “what next”. US initial claims dropped from 363K to 355K in the week ending at November 3, but the reading must take in account Hurricane Sandy. The US trade deficit narrowed from $43.79B to $41.55B. EIA natural gas storage in the US eased from 65B to 21B in the week ending at Nov-2.

France and Germany saw imports and exports contracting further in September, but both French deficit and German trade surplus narrowed. The Spanish government selling a total of €4.763B out of a €3.5-4.5B target of 2015 (€0.992B at 3.660% - previously at 3.956%), 2018 (€3.04B at 4.680%) and 2032 (€0.731B at 6.328%) bonds. The Bank of Italy reported that bad loans have risen -15.3% in last September.

“Yesterday's sell-off bottomed at 1.2737 and current rebound should be considered corrective, preceding next slide to 1.2680-90”, wrote Deltastock analyst Stoyan Mihaylov, pointing to resistances at 1.2785 and 1.2830. “Crucial for the whole downtrend from 1.3139 high is already 1.2875”, he added.

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