FXstreet.com (Córdoba) - Following a short-lived relief rally on the back of Greek elections' outcome, the euro came under pressure and reversed daily gains as market recognized European woes are far from over, with Spanish borrowing costs reaching an euro-era high above 7.0% on Monday.
EUR/USD peaked at 1.2746 during the Asian session and then fell more than 190 pips before finding support at the 1.2555 zone. At time of writing, EUR/USD is trading at the 1.2575 zone, below the broken 100-hour SMA (1.2590), where it records a 0.9% loss on the day.
"The EUR/USD is mirroring it action that started the previous week (6/11). It was the Spanish bailout that gave the EUR/USD a jolt to 1.2666, followed immediately by a fade in risk", said Fan Yang, analyst at FXTimes.
According to the analyst, below 1.2600 the EUR/USD eyes June's correction trendline. "A break below this TL, near 1.2520, should be a signal of a bearish continuation, with the first key level at 1.24-1.2410 area, before the 1.2285-1.23 June lows", said the analyst. If the market can hold above 1.2530/40, "we still have upside risk toward the next resistance pivot at 1.2820".
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EUR/USD peaked at 1.2746 during the Asian session and then fell more than 190 pips before finding support at the 1.2555 zone. At time of writing, EUR/USD is trading at the 1.2575 zone, below the broken 100-hour SMA (1.2590), where it records a 0.9% loss on the day.
"The EUR/USD is mirroring it action that started the previous week (6/11). It was the Spanish bailout that gave the EUR/USD a jolt to 1.2666, followed immediately by a fade in risk", said Fan Yang, analyst at FXTimes.
According to the analyst, below 1.2600 the EUR/USD eyes June's correction trendline. "A break below this TL, near 1.2520, should be a signal of a bearish continuation, with the first key level at 1.24-1.2410 area, before the 1.2285-1.23 June lows", said the analyst. If the market can hold above 1.2530/40, "we still have upside risk toward the next resistance pivot at 1.2820".
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