EUR Trading Outlook (26-02-2013)

The Euro (EUR) the EUR/USD rallied to 1.3270 before crashing on the hung Italian parliament polls and we are targeting a 1.3000 break if the selling continues into Europe. EUR/JPY fell over 600 pips from the Monday open and was the catalyst for the USD/JPY slide which added to the EUR/USD selling pressure. The market will be closely watching the developments in coming days to see if a political deal is made and what comments the new leader makes regarding recent austerity.

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