Forex News – Euro continues to decline as European debt woes magnify

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Forex News - Euro continues to decline as European debt woes magnifyThe Euro continued its decline in today’s European session, dropping from a day’s high of 1.4200, by over 100 pips to a low of 1.4072. The recent movement of the single currency sees it drop well past its 161.8% Fibonacci extension level of its June 13th to June 14th rise and move within 60 or so pips of the next Fibonacci extension (261.8%) at 1.4015. A level at which the Euro is expected to face stiff resistance. Should the EURUSD continue and drop beyond a level of 1.3967, it will signify a down trend for the single currency in the larger timeframes. The downtrend seen in recent days has been attributed to the ongoing worries in Greece as well as the divided opinions amongst the European communities with regards to a bailout provision for Greece. Protests have continued to take place in Athens and have highlighted the obstacles that Greece will face in receiving a second bailout. Against the Swiss Franc, the Euro dropped to an all time low, breaking past the previously withheld level at 1.2000 and reaching a low of 1.1955.

 

The Sterling has continued in its recent downward trend, in spite keeping level around the 1.6200 mark in earlier session against the USD. The recent decline in the British Pound sees it reach a three week low at 1.1955 and as of yet shows no sign of slowing down. Strong support is seen at the 1.6058 level which currently signifies the May 24th low. A disappointing result from the UK retail sales data, which came out at -1.4% and was well below the expected value of 0.6%, further aided in the Sterling’s decline.

 

Against the Euro, the Sterling gained throughout the European session, to rise to a daily high of 0.8779 before steadying off around the 0.8760 levels. The EURGBP pair has taken a slight pause from its recent decline but is expected to continue dropping as worries in Greece continue to negatively influence the single currency. The worse than expected retail sales data in the UK has helped steady the cross pair, however further decline is expected. Support for the pair is seen around 0.8750 – the 61.8% Fibonacci level of the May 26th to June 8th rise.

 

The USDCHF pair has been steadily dropping throughout the European session, after having traded steadily around the 0.8530’s. The pair has thus far dropped to a low of 0.8480, which if convincingly broken will signify a reversal in trend.