12 Jun 2015
EUR/USD falls to 1.1150 on Merkel comments
FXStreet (Mumbai) - The shared currency came under selling pressure, taking the EUR/USD pair lower to 1.1150 after the German Chancellor Angela Merkel expressed concerns over the strength in the Euro.
Strong Euro a problem for Spain and Ireland
The EUR/USD fell sharply after Merkel said that too much strength in the Euro would limit the effectiveness of reforms in Spain and Ireland. Merkel’s comments pushed the spot below 1.1228 (23.6% Fib R of 1.0461-1.1465), where fresh offers ensured the pair fell well below 1.12 levels.
Moreover, the spot was rejected earlier today at a 1.1265 as markets head into the weekend with no end in sight for the Greek saga. At the moment, the pair is trading at 1.1158 levels; down 0.885 for the day.
EUR/USD Technical Levels
The immediate support is seen at 1.1130, under which the pair could drop to 1.1082. On the other hand, a break above 1.1228 could see the pair re-test 1.1265 levels.
Strong Euro a problem for Spain and Ireland
The EUR/USD fell sharply after Merkel said that too much strength in the Euro would limit the effectiveness of reforms in Spain and Ireland. Merkel’s comments pushed the spot below 1.1228 (23.6% Fib R of 1.0461-1.1465), where fresh offers ensured the pair fell well below 1.12 levels.
Moreover, the spot was rejected earlier today at a 1.1265 as markets head into the weekend with no end in sight for the Greek saga. At the moment, the pair is trading at 1.1158 levels; down 0.885 for the day.
EUR/USD Technical Levels
The immediate support is seen at 1.1130, under which the pair could drop to 1.1082. On the other hand, a break above 1.1228 could see the pair re-test 1.1265 levels.