Forex: Euro under pressure as Asian session sees EURUSD at 10 day low

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The Euro began some 30 pips lower from last week’s close in this week’s first session, opening up at 1.4040 against the USD and dipping some 18 pips to reach a 10 day low of 1.4020 in early Asian session. The Euro is believed to have been weighed on by the news of a German state election rout for Chancellor Angela Merkel’s conservatives and last week’s inability to break past the 1.4248 level – the November 5th high and head towards the 1.4281 level which is the current 14 month high that was reached on the 4th of November; both levels are regarded as strong resistance levels for the EURUSD pair.

 

Regardless of the current direction of the Euro, investors are still confident that the recent decline of the Euro will be limited as an expected interest rate hike by the European Central Bank may see the Euro appreciate in the future. In the near term however, some see the single currency dropping convincingly past a current support level of 1.4035, which was the March 7th high as last week’s Euro news have heavily influenced the EURUSD, following the break down in the Portuguese government and the hold up with regards to an increase in the Euro zone rescue fund.