EURUSD Analysis – Outlook 28th February 2013
- EURUSD experienced a corrective upside move on Wednesday, driven in part by the positive outcome of a bond sale in Italy.
- Prior to this, the euro had seen a decline in value of around 1% against the greenback on Monday, into the 61.8% Fibonacci retrace area, on heightened concerns that the euro zone debt crisis was once again becoming a key focus.
- The rally higher today has the euro/dollar trading around the 1.3150 area previous price pivot, as per the daily chart below.
- Price has been as close as 16 pips from the 1.3000 area this week, a psychological level which could yet feature if the recent bearish price action resumes.
- Additional downside remains a possibility as market participants monitor whether politicians in Italy will form a coalition, or if an alternative scenario plays out.
- The daily range on Wednesday was 105 pips, 116% of the ADR (average daily range) over 60-days.
- In related markets, the German DAX closed +1.0%, the UK FTSE at +1.0% and the Italian MIB at +1.8%.
Brad Styles, Forex-FX-4X.com, EURUSD news