Forex: EUR/USD extended gains on Van Rompuy and Spain auction

FXstreet.com (Barcelona) - The widely expected Spanish bond auction found lower average yields, selling a total of €4.5 through 3-year bills (at 2.713%, from previous 3.358%), 5-year bills (at 3.770%, from 3.988% previously) and 2041 bonds (5.696%, from previous 6.002%). As results came in, so the EUR/USD breached above the 1.3350 previous European morning resistance area.

President of the European Council Van Rompuy words also supported euro buying after saying that Europe should get back on growth in 2013. On the negative side, the EMU construction output contracted -0.4% in November to an annualized fall from -4.1% to -4.7%.

“EURUSD established support at 1.3265, lending to a bout of consolidation on the session”, wrote Fxstreet.com independent analyst Richard Lee. “Any upside corrections at this point will target resistance at the 1.3403 January 14th session high”, he added, pointing to a second support at 1.3140.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS