FXstreet.com (Barcelona) - The USD has risen today against de Euro on a speculation that US Government will approve an extra 30 billions to the AIG rescue plan and the USD has been strengthened as safe haven currency.
On the other hand, the Eastern Europe banks worries has pushing selling pressure to the Euro. Traders are anticipating another interest rate cut to the lowest level of 1.5% on Thursday. The EUR/USD has fallen more than 130 pips in the early American session, right now the pair is trading around the 1.2570/90 band.
According to Valeria Bednarik, FXstreet.com collaborator, the Euro is under selling pressure and a weak confidence in the European Monetary Union: Euro is unable to recover above the 1.2660 zone, and remains under strong selling pressure. Financial woes has hit confidence in the Euro really hard, and things are likely to worsen from now on, as concerns that Euro zone banks are now closer to risk of default than economies themselves. The key 1.2513 level seems ready to be tested soon, under which, the 1.2330 gets exposed.
On the other hand, Hugh Gordon, Analyst at ForexYard, The EUR/USD is shoing mixes signals: The daily chart is showing mixed signals with its RSI fluctuating in neutral territory. However, the 4-hour chart's RSI is already floating in the over-sold territory indicating that a bullish correction might take place in the nearest future. When the upwards breach occurs, going long with tight stops appears to be the preferable strategy.