Forex: EUR/USD back below 1.3300

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FXstreet.com (Barcelona) - The shared currency is trading in levels sub 1.3300 once more on Wednesday, after a bout of risk aversion has irrupted in the markets, breaking the prevailing lull.

Dean Popplewell, Chief Currency Strategist at OANDA, said "Everyone and their mother seem to have given some sort of market warning over the past 24-hours. This has allowed negative sentiment to sweep across financial markets on worries about the US debt ceiling, and a warning by Fitch that US, UK and Spanish rating are under threat. Even the long EUR positions have got a slap in the face this morning as Euro-group President Juncker gave the single currency the proverbial 'kiss-of-death' by iterating that the currency was "dangerously" high. It was always to happen, as Europe cannot grow with too high a currency value".

As of writing, the cross is down 0.17% at 1.3283
Next support levels line up at 1.3249 (low Jan.11) ahead of 1.3200 (MA21d) and then 1.3193 (MA10d).
On the other hand, a break above of 1.3325 would open the door to 1.3370 (Upper Bollinger) and finally 1.3404 (high Jan.14).



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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