Forex: EUR/USD ends the week at 2-year lows

[reynuevo]

FXstreet.com (Córdoba) - The euro weakened broadly on Friday, falling to fresh 2-year lows against the dollar after Spain's Valencia region asked for financial aid from the central government, fueling fears the country will need a full bailout.

EUR/USD dropped to its lowest rate since June 14, 2010 at 1.2143 as Spanish 10-year yields soared to a fresh euro-era high of 7.32% and the spread over the German bunds topped 600 bp. The Spanish stock index Ibex-35 closed 5.8% down.

Also on Friday, the rating agency Egan-Jones cut the Iberian country rating for the fourth time in nearly 3 months to CC+ from CCC+. Against this backdrop, the Eurogroup formal approval of Spanish bank bailout failed to offset the gloom.

Meanwhile, the shared-currency also hit a 3 ¾-year low versus the pound, and a 12-year low against the yen. The euro also printed new record lows versus the AUD, the CAD and the NZD on Friday and hit multi-month lows against the NOK and SEK.

EUR/USD is currently quoting at the 1.2150/60 area, recording a 1.0% loss on the day and a nearly 0.8% weekly decline. It was the third weekly decline in a row for the pair.

[Bbarbara]

Daily Pivots: (S1) 1.2108; (P) 1.2195 (R1) 1.2246

[ddukic]

EUR/USD 24/07/2012

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COMMENTS: The parity waited for the Yellow Ellipsis to lower down on its path and act as resistance after a certain time during the yesterdays session and up to now. Further delay of the paritys evolution will give time to the blue Ellipsis to join the same position and together with the Yellow Ellipsis create a more solid resisting level. The comment of yesterday is still valid.



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