EUR/USD: Euro weakens below 1.2750 ahead of U.S. Housing Prices Index

By IBTimes Staff Reporter | February 24 2009 3:49 AM

FXstreet.com (Barcelona) - Euro rally from 1.2662 has capped at 1.2830 and the pair has dropped about 100 pips so far falling through support level at 1.2750/60 area towards next support area at 1.2720.

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The Euro seems to be dropping on a firm pace, and in case 1.2720 support gives, the pair could drop towards nest support level and intra-week low at 1.2662. On the upside sustainable rebound on 1.2525 should get past resistance level at the 1.2750/60 area in order to test intra-day high at 1.2830.

One of the main indicators on Tuesday's U.S. session will be S&P/Case-Shiller housing prices index, a better than expected reading could ad selling pressure to the Euro while, on the contrary, a further decline in U.S. housing prices could trigger a reaction on the Euro side driving the pair up again to levels close to 1.30.