Forex News – Euro takes pause from recent drop

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The US session see’s the Euro recovering from earlier losses as a bounce from a 3 week low of 1.4072 to see the Euro retrace over 70% of today’s drop left the single currency trading around the 1.4140’s for most part of the US session. The current level of the Euro sees it trading mid way between today’s range as the single currency looks set to continue with its recent downtrend with support being seen at the 1.4000 level. The single currency today fell by over 100 pips as the recent riots in Greece have once again highlighted concern in the Eurozone and future plans for a 2^nd bailout – a plan which has left Eurozone members divided.

The Greek debt woes have also spread and have influenced the Canadian Dollar, bringing the USDCAD pair to a 3 week high at 0.9860. The recent debt woes of Greece have seen many seek comfort in less risky currencies like the USD and as a result a number of the majors, including the CAD, have dropped to weekly low levels. The recent troubles in Greece have been a catalyst for the recently seen Canadian Dollar sell off.

The British pound traded around the 1.6110 levels for most part of the US session, oscillating by some +/-35 pips, as the day’s lasts session sees the UK currency taking a pause from recent drop. Strong support for the GBPUSD is seen 1.6053 – the May 24^th low, with further support seen at 1.5930 – the March 28^th low. The GBPUSD pair is currently trading around the 1.6125 level which signifies the 61.8% level of today’s range for the pair.

The Swiss Franc reached an all time high against the Euro as the EURCHF dropped to a low of 1.1945, breaking past a previously seen support level of 1.2000. The pair dropped by over 1% on the day from a day’s peak of 1.2124. The US session sees the Swiss Franc ease up on the Euro and rise over 100 pips and come back to trade around the 1.2050’s around the end of the US session.

Against the USD the CHF continued to gain, bringing to USDCHF to a low of 0.8476 on the day. The pair dropped by over 50 pips in today’s sessions as the safe haven appeal in the Swiss Franc has left investors seeking long positions in the currency.