Forex Flash: EUR/USD next support at 1.2998 - Commerzbank

The EUR/USD returned to point of break down from its previous 3 month uptrend and collapsed lower: "We have an initial downside target to 1.2679/61, this is the 61.8% retracement of the move up from July 2012 and the November 2012 low", wrote analyst Karen Jones, pointing to initial support at 1.3075/3, the 38.2% retracement of the same move has already been reached. Below, there is 1.2998 then 1.2885/76 – the 7th December low and 78.6% retracement. "Near term rebounds should find initial resistance at 1.3180, 1.3260 and that the previous 3 month trendline should now act as resistance at 1.3336/48", she added.

Feb 26, 2013

Asian markets down on concerns over Italy and inconclusive elections

Fear that inconclusive elections in Italy could reignite the euro zone debt crisis is taking it's taking its toll on financial markets. Japan's Nikkei Stock Average (-2.26%), South Korea's Kospi (-0.47%), Mainland China's Shanghai Composite (-1.40%) and Hong Kong's Hang Seng (-0.89%).

Forex: USD/JPY at upper 91 area

The USD/JPY went for a big drop yesterday, failing to hold at 94.00 and tumbling more than 300 pips to 90.91 low. A retracement to 92.75 followed but didn't last long, as the Asian session brought the pair back down. At the moment of writing, the market seems tempted at trading at 91.50/92.00 range.