Forex: EUR/USD plunges on French banks downgrade

FXstreet.com (Barcelona) - After hitting a high of 1.3433 in reaction to new Chinese investment fund, the EUR/USD has been plunging back down on news of Moody’s downgrade of 3 major French banks’ debt. BNP Paribas, Societe Generale and Credit Agricole dropped one notch in their rating to Aa3. Moody’s explains its action with those banks’ deteriorating liquidity and funding conditions.

The EUR/USD has fallen below the 1.3400 level and is now quoting again at 1.3333 level, 10 pips away of opening price of 1.3343. Bijoy Kar, analyst at MIG Banks says: “EUR/USD bears have pushed lower, as expected, following the EU Summit and in price terms, still target support at 1.3212 (25th Nov low) and 1.3146 (Oct swing low)”.

Windsor Brokers analyst Slobodan Drvenica points resistances at 1.3332, 1.3350, 1.3370 and 1.3390. Supports might be found at 1.3280, followed by 1.3260, 1.3211 and 1.3200.

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