Forex Flash: EUR/USD break of all key supports opens doors to 1.26 – TD Securities

FXstreet.com (Barcelona) - Investors are concerned and consider the wider implications of the Cyprus bailout as well as an unsettled Italian parliament. Rumors on a potential Italian downgrade as well as deposit levies in other Eurozone countries (Italy in particular) are not helping sentiment either. “Deposit levy rumors appear significantly overblown, but for the EUR a lot of the damage has been done as it trades below the 1.28 figure for the first time since November”, wrote TD Securities analysts Shaun Osborne and Greg Moore, seeing a clear break of the all the key support levels after the drop below 1.28. “That makes it hard to argue for a rebound, making the EUR more of a sell on rallies to the mid 1.28 zone—in the short term at least. The next key support is spotted in the mid to upper 1.26 area”, they added.