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Forex: EUR/USD intensify its decline

FXstreet.com (Barcelona) - The increasing pessimism and risk aversion are dragging the cross to the area of 1.2770/75 on Wednesday, levels last seen in late November.
Recent comments by German officials arguing that there is ‘no single model for all cases’ regarding the crisis whipping the euro zone are adding to the selling pressure.

In the same direction, P.L.Bersani’s attempts to form some sort of government in Italy seem to be doomed after 5-Star party leader B.Grillo has rejected any coalition with the rest of the political parties.

At the moment, the cross is losing 0.61% at 1.2777 and a violation of 1.2730 (low Nov.19) would open the door to 1.2662 (low Nov.13) and finally 1.2627 (low Sep.7).
On the upside, resistance levels line up at 1.2922 (MA10d) followed by 1.3050 (high Mar.25) and then 1.3107 (high Mar.15).

European markets down on concerns over Italy

The German DAX 30 (-1.65%), the French CAC 40 (-1.16%), the Italian FTSE MIB (-1.54%) and the Spanish IBEX 35 (-1.72%) are falling on Wednesday, along with the rest of equity markets in Europe. The EMU confidence report came in even worse than expected. March industrial confidence (from -11.3 to -12.5), services sentiment (from -5.3 to -6.7) and business climate (from -0.72 to -0.86) dropped below consensus (-12.0, -6.5 and -0.80, respectively). Consumer sentiment improved slightly from -23.6 to -23.5, as expected. Adding to that are worries of a rumored Italian downgrade, while investors are on their toes ahead of the re-opening of Cypriot banks tomorrow, as well as Italy’s Bersani talks with President Napolitano tomorrow regarding the progress of coalition negotiations.
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