Euro Declines Against Dollar As Focus Remains On Greece
Friday, 27 January 2012 | 12:41
The euro extended its yesterday's downtrend against its US counterpart as talks between Greece and private sectors are still to produce a positive outcome to develop a plan for the debt swap arrangement.
With the pair falling shy of its 38.2 percent retracement level in the 4-hour chart, near-term bias is to extend downtrend unless it gets some positive boost from Greece over the coming sessions. The MACD is converging downwards just above its signal line, suggesting the pair may retest a critical support around the 1.30 area, at which the 23.6 percent retracement lies.
The focus is still on Europe, as talks between Athens and its private sector bondholders will continue on Friday to reach a deal on restructuring the country's debt, which is a pre-condition for securing more aid from its international creditors ahead of March, when it must repay EUR 14.5 billion of maturing debt.
Disappointing U.S. housing data led to some negative sentiment in the market overnight and investors preferred to stay on the sidelines ahead of the release of the Commerce Department's advance estimate of U.S. fourth quarter GDP later in the global day.
Source: RTT News
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