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EUR/USD breaches 1.2600

FXStreet (Edinburgh) - The common currency is now accelerating its intraday decline, quickly dragging EUR/USD through the key support at 1.2600.

EUR/USD weaker post-data

The selling interest continues to punish the beleaguered currency at the beginning of the week, now confining spot to trade in levels last seen in early September 2012 around 1.2595/90. Lower consumer prices in the euro area during September seems to have sparked the current sell-off, with CPI easing to 0.3% YoY from 0.4% YoY and all ahead of this week’s ECB meeting. “With all technical signals in sell territory and downward momentum strong the near-term technical outlook for EUR remains bearish. The RSI is at 22, which implies the currency is temporary oversold, however until there is another signal that confirms this, EUR appears poised for further downside risk”, suggested Camilla Sutton, Chief FX Strategist at Scotiabank.

EUR/USD levels to watch

As of writing the pair is retreating 0.66% at 1.2601 and a break below 1/2561 (low Sep.6 2012) would target 1.2502 (76.4% of 1.2042-1.3995) en route to 1.2493 (low Aug.31). On the flip side, the initial hurdle lines up at 1.2664 (low Sep.29) followed by1.2715 (high Sep.29) and finally 1.2761 (high Sep.26).

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