Forex: The EUR/USD rejected the 1.2580, but hold above 1.2500

on March 05 2009 6:40 AM

FXstreet-com (Barcelona) - The Euro rally has been capped at the 1.2580 resistance and the pair has fallen near to 65 pips from the 1.2585 to the 1.2520. The pair looks in a bearish momentum, but the EUR/USD is holding the 1.2500 support despite the Trichet comments.

If the EUR/USD hold above the 1.2500, the pair will be back in a new attempt to break the congested zone of 1,2660/80 and go above the 1.2600 level. On the downside, if the pair breaks the 1.2500 level, it will try to break the 1.2480 support and reach new daily news below 1.2450.

According to Valeria Bednarik, FXstreet.com Collaborator: Despite Trichet's comments, euro continues holding above the 1.2500 zone, while stocks are again slumping in the U.S. Rumors of futures options at that zone, are defending the downside quite well, yet the currency remains mostly bearish across the board. Downside seems limited with the pair consolidating here, and seems market players have to aims to risk positions at these levels.

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