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FXstreet.com (Barcelona) - The European morning plunge of the EUR/USD from just below 1.2300 reached as low as 1.2217, from where it is currently bouncing. At the moment, the pair trades at 1.2220/30 area ahead of the American session and the housing data releases, the second Fed's Bernanke testimony before the Senate and the Beige Book.

The European morning was marked by ECB's Asmussen stating how divided the North and South are and the need to unite for integration or break apart. Meanwhile, German Chancellor Merkel, although optimistic, can't be sure the European project will succeed, which might have triggered the EUR/USD plunge.

"EUR/USD remains in a tight consolidation band between 1.2150 and 1.2320. Scope is seen for a short-term burst higher to re-test the 1.2320 region, where a lower high is favoured to form", wrote MIG Bank analyst Bijoy Kar, pointing to 1.2380 as a stronger resistance target.

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