FXstreet.com (Barcelona) - European stock markets have follows Asian ones on Monday and they are posting losses in the first hours of Monday's trading session, the EUR/USD, has echoed stock markets reversing its recovery to drop about 40 pips at European session opening.
Eastern European troubled banking sector seems to be dragging down the Euro, specially after EU leaders refused to bail out Banks of the former Eastern Block, as the Forex.com Research Desk explains it: The noble leaders of the EU voted down a request of 180 billion Euros to help shore up the financially crippled banks of the old eastern bloc of Europe, and the EUR/USD suffered for the lack of foresight and action.
EUR/USD recovery from Asian session low at 1.2545, has capped at 1.2621 several minutes ahead of the European session opening and has dropped heavily to test support level at 1.2550/65. If this support level fails to hold, the EUR/USD would be on its way to 1.2510/25 area (Feb 18 low) and below there Nov 20 low at 1.2525.
On the Upside, recovery from current levels should consolidate above 1.2615 before attempting to test 1.2660 resistance level, and above here, 1.2700,