Tuesday, October 30, 2012

EUR/USD Analysis 30-10-2012

The euro reached the lowest level in almost three weeks amid a growing divide over Europe's new bailout strategy and data that showed the region's three-year- old sovereign-debt crisis is weighing on its economy. The dollar rose amid higher haven demand. The U.S. securities industry canceled stocks trading today and tomorrow as Hurricane Sandy headed toward the New York City area. Retail sales in Spain slid 11 percent in September from a year ago, a report showed, and the nation's central bank set up a so-called bad bank to buy impaired property assets. The euro touched a two-week low versus the yen after German Finance Minister Wolfgang Schaeuble rejected another Greek debt restructuring. A collapsing Spanish economy and concerns about the effects of Hurricane Sandy gave traders two good reason's to sell the euro, said Joseph Trevisani, chief market strategist at WorldWideMarkets Ltd. in Woodcliff Lake, New Jersey. Spanish reluctance to ask for a bailout is slowly mitigating the positive euro effect of the European Central Bank's bond-buying plan. The euro weakened 0.3 percent to $1.2904 at 4:59 p.m. New York time and touched $1.2885. It reached $1.2883 on Oct. 26, the lowest level since Oct. 11. The 17-nation common currency was little changed at 102.98 yen, after sliding as low as 102.52, the least since Oct. 16. Japan's currency declined 0.2 percent to 79.80 per dollar. The shared currency pared a third straight monthly gain to 0.3 percent.


 
Support
Resistance
EURUSD
1.28810
1.29310
1.28580
1.29580
1.28300
1.29820

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