- Euro weighed down by German political news, as Merkel fails to pull together a coalition government.
- A new election now looking a distinct possibility, which is likely to keep pressure on the single currency.
- EUR/JPY down 0.46% on the day, edges higher from session lows at 131.17.
- The pair finds strong support in the 130.98 to 131.20 region, break below will see weakness.
- Next major support below 100-DMA lies at 129.86 (23.6% Fib retrace of 114.85 to 134.50 rally).
- Break above 5-DMA at 132.81 could see minor upside till 133.88.
- Focus now on Draghi's testimony on the economy and monetary policy before the European Parliament Economic and Monetary Affairs Committee.
Support levels - 131.21 (100-DMA), 131, 130.60 (Sept 15 low), 129.86 (23.6% Fib retrace of 114.85 to 134.50 rally)
Resistance levels - 132.61 (20-DMA), 132.81 (5-DMA), 133
Recommendation: Good to go short on decisive break below 100-DMA at 131.21, SL: 132.80, TP: 131/ 130.60/ 129.85.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -30.0359 (Neutral), while Hourly JPY Spot Index was at 56.0253 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
