EUR/USD is losing ground, hour by hour, pushed by rising US yields and on the eve of the EU Summit. Only a dramatic announcement will stop the bleed. Update Euro/Dollar is just above 1.32 at the end of the day in the US. Since the US session began, the common currency dropped constantly, losing over 150 pips. Why? One of the main drivers was the rise in yields on US treasury yields. The tax cut deal reached by Obama and the Republicans passed another hurdle. It’s going to weigh on the deficit and will make it harder for the US to pay its debt causing a sale of bonds – raising the yield, which pushed forward and rose above 3.5%. – Absurdly, this helped the dollar -fresh fear sends money to safe haven currencies with the dollar leading the pack. USD/JPY made a breakout, even though the yen is also a “safe haven” currency, and the Swiss franc also enjoyed this status, especially against the weak pound – GBP/CHF is at an all time low. EU Summit In Europe, the situation is still worrying – Spanish bond yields are a good barometer for the debt crisis – they touched the all time high of 5.60% before calming down. The Irish parliament did pass the bailout plan, but there are still worries about Portugal’s finances. The leaders will discuss what’s next for bailouts – a permanent and convincing mechanism is needed for this, and there are currently many doubts about the leaders being able to reach such an agreement. An option that gave hope – printing euros by the ECB, is off the agenda. Any bond buying made by the central bank is sterilized (no money printed), and the capacity is very limited. EUR/USD Lines The next significant line of support is 1.3180, which was a tough line recently. Below, 1.3114 is a minor line that worked way back in the spring. The obvious round number of 1.30 is next, followed by the lowest level in recent months – 1.2970. Above, 1.3267 is a minor line of resistance, followed by 1.3334. Significant resistance is found at 1.3440. A breakout above this line was very short lived. See more lines, analysis and outlook of events in the EUR/USD forecast. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading NewsOpinions share Read Next EUR/USD Dec. 16 – Holding on to Low Support Yohay Elam 11 years EUR/USD is losing ground, hour by hour, pushed by rising US yields and on the eve of the EU Summit. Only a dramatic announcement will stop the bleed. Update Euro/Dollar is just above 1.32 at the end of the day in the US. Since the US session began, the common currency dropped constantly, losing over 150 pips. Why? One of the main drivers was the rise in yields on US treasury yields. The tax cut deal reached by Obama and the Republicans passed another hurdle. It's going to weigh on the deficit and will make it harder for the US… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.