EUR/USD tested resistance at 1.2965, and so far that former support level is now providing resistance. Remember, on the way down, EUR/USD repeatedly edged below the 1.3000 level only to rebound quickly back above that level. It is a natural spot for sellers who missed the move lower to let a few go. A sustained move back above 1.2990/1.3000 is needed to take the near-term down side pressure off of EUR/USD.
What little news there was today was mostly euro supportive. Both France and Germany denied they were pressuring Portugal to take a bailout (though the head of the Portuguese central bank noted that his country’s public debt is unsustainable).
Talk from an MOF official that Japan may buy euro zone debt was helpful…
