The battle for 1.3000 has begun. EUR/USD has fallen as low as 1.3007 so far with confidence on the euro zone’s ability to both grow quickly enough to keep the economy out of recession and consolidate budgets enough to keep the largest debtor nations out of default is questioned.
Not sure we’re going to get much follow-through if 1.3000 is lost but I think there will be a serious attempt to trigger barriers before a meaningful bounce unfolds. 1.3050 and 1.3075 are modest resistance levels on bounces.
