Forex: EUR/USD in a sticky wicket following plunge below 1.2900

FXstreet.com (Barcelona) - The EUR/USD has been in a tailspin Monday, following the disparaging remarks from the Chairman of Cypriot Parliamentary Finance Papadoloulos, in which he noted that they must assess benefits of a euro exit. The comments sent the pair into escape velocity below the 1.2900 region, as the cross inked fresh session lows at the 1.2674 level.

Italian politics also weighed on the single currency, as PD’s Bersani tries to form a government, the Five Star Movement loses some of their domestic support after voting for a PD candidate for President in the Senate, and Berlusconi’s PdL has reportedly been gaining in the polls were there to be early elections. “With the Easter shortened week, we would expect Bersani to announce his decisions by mid-week on forming a government, personally resigning, or capitulating to new elections, or else this may be delayed until next week”, noted TD Securities analysts.

At the time of writing, the pair is operating slightly above these lows at 1.2875/79, incurring a steadfast loss of -0.63% off its opening. After rupturing calculated support at 1.2945 and 1.2905, ICN.com analysts point to additional means of correction at the 1.2865 handle. On the ascension, resistances will trigger at 1.3085, onto the 1.3120 handle and 1.3155.