EUR/USD - 1.2172 Daily Market Outlook

By IBTimes Staff Reporter | May 19 2010 3:15 AM

The single currency tumbled to fresh 4-year low of 1.2143 in Asia on heavy selling from various accounts after German announced to ban on naked short sales of euro-denominated govt. bonds, CDS based on those bonds n shares in Germany's 10 leading financial institutions, suggesting long-term downtrend from 1.6040 to retrace entire upmove from 0.8228 would extend marginal weakness below 1.2134, however, loss of downward momentum should prevent steep decline from there and reckon 1.2100 would hold on first testing and bring rebound later. On the upside, only a rise above 1.2248 would signal a temporary low is made and may bring a minor retracement to 1.2294 and possibly 1.2330, however, resistance at 1.2445 is expected to remain intact.

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