Forex: EUR/USD still under 1.3000

After losing the 1.3000 handle during the European trade, particularly after the release of a disappointing March Sentix Investor Confidence in the Eurozone, the EUR/USD is finding 1.3000 as resistance to recovery. The pair continues playing under the level as investors in Europe go for lunch and the NY offices prepare for the opening.

Scheduled in the economic calendar is FOMC Yeller's speech at 13:00 GMT and US ISM New York at 14:00 GMT, but it's to worth to keep an eye on headlines coming from the Eurogroup meeting. The market is also sensitive to China after news of measures to cool the property market there, including raising taxes on profits on sales of second homes and increasing required mortgage down payments/interest rates, also for second homes.

“Negative sentiment persists and clear break below 1.3000 will initially target 1.2908, Fib 76.4% of 1.2660/1.3710, with main near-term target sen at 1.2875, mid-point of broader 1.2042/1.2710, July 2012 / Jan 2013 rally”, wrote Windsor Brokers analyst Slobodan Drvenica, requiring break above 1.3100 to improve near-term structure and initial resistance at 1.3040.