Before the news were released, bids from lows at 1.4077 had pushed the price as high as 1.4110 after the late sell-off from yesterday amid the collapse of the Portuguese government. The EU Summit that begins today is thought to focus on a bailout plan for the Iberian country.
“Based on all that’s happened in the EUR over the last 48 hours, and based on the fact that the EUR is already at reasonably high levels against the USD, GBP and the JPY for that matter, I’m surprised that the sell-off in the single currency isn’t more aggressive” said Sean Lee at Forexlive.
Technically, Valeria Bednarik from FXstreet adds: “Euro bounce from 1.4077 is still limited to the upside with 4 hours chart showing bearish momentum intact. Lose of mentioned low should trigger a spike towards the 1.4030 static support area, also ascendant trend line coming from March 11 daily low. Lose of this last should trigger further fall in the cross towards the 1.3950 strong Fibonacci support”.