The shared currency is prolonging its correction lower fro overnight highs around 1.2940 on Wednesday, retracing ground to the current area of 1.2910/15.
Next on tap in the euro area will be the Current Account figures during March. Consensus expects the surplus to ease to €15.0 billion from €16.3 billion in the previous month. The most relevant events will be, however, the FOMC minutes and Bernanke’s testimony before the Congress, keeping the volatility alive throughout the day.
As of writing the pair is up 0.02% at 1.2909 and a breakout of 1.2930 (high May 16) would aim for 1.2943 (high May 15) and finally 1.2947 (MA10d).
On the downside, support levels line up at 1.2809 (low May 20) ahead of 1.2796 (low May 17) and then 1.2740 (2013 low Apr.4). – FXstreet.com (Barcelona)