Euro Falters as Spain Bank Rescue Rekindles Concerns
The Euro has come back under pressure as bank rescue by Spain has reignited concerns over the region. The EURGBP has fallen nearly 200 pips from Friday’s high as the pair found resistance at the 50-Day SMA at 0.8748. The 20-Day SMA is providing support today at 0.8591. A break below the technical level would lead me into a short position with my initial target of 0.8450. It appears that broader fears are building and a major sell off in risky assets could be imminent. Therefore, I will also look to take advantage of broader dollar strength with a flight to safety.
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