EUR/USD steadies around 1.2580

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EUR/USD steadies around 1.2580

FITITOL--> FXstreet.com (Córdoba) - Weak US data triggered risk aversion during the New York session, putting the euro under renewed pressure and sending EUR/USD to fresh lows at the 1.2565/70 area.

EUR/USD lost more than 100 pips throughout the day, also weighed by news Finland and Netherlands may block plans for ESM bond buying in secondary markets, and hit a fresh daily low of 1.2567 before bouncing slightly. At time of writing, EUR/USD is quoting at the 1.2580 area, down 0.6% on the day.

From a technical view, Slobodan Drvenica, analyst at Windsor Brokers Ltd notes that a break below 1.2580 (Fib 38.2% / 55 day EMA) will delay bulls and open 1.2550/15, Fibonacci supports. "Hourly studies are entering negative territory that increases risk of further weakness, with break below 1.2580 required to confirm".

"At the upside, today's upside rejection at 1.2666, offer s initial resistance, ahead of today's / last Friday's highs at 1.2680/91, break of which to bring bulls back in play for test of key short-term barrier at 1.2745", he said.