The EUR/USD pair has received a modest bid early in the Asian session after trading in a very tight range in NY on a US holiday. Following a year-end move lower toward the 1.45 handle as long Euro positions were closed after a strong year, the pair has continued lower on further woes out of Greece and market concerns on other borderline EU members (namely Spain and Portugal.) Mixed comments out of the EU on the subject of support for these member states and market speculation has weighed heavily on the pair to the tune of 9 more big figures in just over a month. The pressure on Euro could persist for sometime as it had against the USD on talks of China’s reserve diversification throughout 2009. On the charts below we see the sell off in 2010 has used the channel depicted below for support and resistance and the next major support level could be seen at the 61.8% retracement of the last major move from 3/09 (~1.2450) to 12/09 (~1.5140.)
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