EUR crosses saw a steep sell-off in NY trading, paring most of the gains we had seen overnight. From a high overnight in the EUR/USD of $1.45, we have slid back down to 1.4390.

width=669

  • We now look for support at our 200-hourly ema as well as at the support trendline we have established over the last 2 trading session.

The catalyst were disparaging comments from former Fed Chairman Alan Greenspan, in which he says:

  • The euro is breaking down.
  • That some collateral held by euro-area banks is questionable.
  • That the euro-zone crisis is hurting the US economy.
  • But that the US is not yet in double-dip territory

The comments, along with a dip in US equities after gaining overnight, overshadowed the slower, but better than expected activity we saw in the Euro-zone in August from the PMI reports.

The EUR/GBP fell sharply from an overnight high of 0.8770 down to 0.8705, an intra-day low for the pair. The EUR was weaker against the JPY, CHF, AUD and CAD as well.

Nick Nasad
Chief Market Analyst
FXTimes