Forex: EUR/USD reaches 1.2911 low

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Forex: EUR/USD reaches 1.2911 low

FITITOL--> FXstreet.com (Barcelona) - The EUR/USD is getting closer to the 1.2900 psychological level after having reached as low as 1.2911 as American opening capital flows weakened the pair.

Greece, in a political crisis paving way to new elections, and Spain, about to announce measures regarding the financial sector including a rumored nationalization of Bankia, are the key drivers of the day.

Crude oil stocks keep rising and pressuring its price, struggling to keep at $96.00 ground. Meanwhile, Fed’s Kocherlakota has mentioned monetary tightening to be discussed by Q4 2012 or Q1 2013, jittering the EUR/USD.

“Negative sentiment, fuelled by Greece and Spain’s problem, drives the pair towards 1.2900 and 1.2875, our initial targets”, wrote Windsor Brothers analyst Slobodan Drvenica, pointing to resistance at 1.3000, ahead of 1.3042/60.