The EUR/USD pair fell rather significantly during the session on Wednesday, breaking the 1.2850 support level. This is a significant turn of events, and now we have to see whether or not the 1.2750 level can hold as support. If it does not, we could start to see real pressure to the downside. There are concerns of bank runs in Europe at the moment, especially in Cyprus and the periphery. If we start to see those, the Euro really could unwind at this point. Going forward, we do not see a scenario where we once start buying Euros at the moment, but we are more than willing to sell rallies on signs of weakness.
Written by FX Empire