Robert Fico, the Prime Minister of Slovakia said there is a 50/50 chance of a breakup of the euro zone. Slovakia is a member of the euro-zone and has shown opposition in the past to some agreements.
EUR/USD woke up from the solid range trading and fell below support.
The pair trades at 1.2510, below 1.2520, after trading between 1.2540 and 1.2550 during long hours in the day, awaiting Ben Bernanke’s speech at Jackson Hole.
As shown on the chart, the pair is falling sharply, and is getting close to uptrend support, that has so far worked perfectly well.
Adam Button reported about this. Such a statement is quite uncommon from a leader of country that is part of the zone. In October 2011, the previous Slovak government wanted a plan for a Greek default as talks were stuck.
While Slovakia is not one of the wealthiest European countries, it has back policies of core countries, and even introduced its debt ceiling law into the constitution back in December 2011.
Further support is at 1.2440 if this break is indeed confirmed. Update: the pair lost the 1.25 line.
For more lines and analysis, see the EUR/USD forecast.Get the 5 most predictable currency pairs