EURUSD pressing the downside
The EURUSD is pressing the 2 week low prices at the 1.3528. 1.3538 and 1.3551 levels as NY continues to pressure the currency. The Greece situation/lack of action has the market back eyeing the downside for the pair.
The rates that Greece is to pay for its upcoming debt obligation (10 billion euro on April 20 and May 19th) had widened to 330 pips above German debt at current market rates. The country needs to have this premium subsidized and/or have the market spread contract. So far, any austerity announcements have not impressed the market nor narrowed the spread. The EU is not fully committed to making any concrete support although some have suggested (i.e Trichet) that they might need to in order to keep confidence in the EU. If not, that leaves the IMF as a source of last resort. Time will tell, but until then, the focus is on the negative.
The market move higher over the last few weeks but stalled below the target topside levels of 1.3852/73 as represented by the low from the February 1st and the 38.2% retracement (see chart below). The trend back to the downside seems to have reasserted itself and a look toward the low at 1.3437 is likely.
On the topside, watch for 1.3569 to provide resistance (see chart below). This is the 28.2% retracement of the days trading range.
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