Forex: EUR/USD keeps the red below 1.3100

The euro remains in the red territory after the European close on Thursday, as the risk-off tone continues to rule the markets.

In light of the recent weakness seen in the single currency, Christopher Vecchio, Currency Analyst at DailyFX, commented, “We now must focus on what potential positives there might be to drive the Euro. True, the European Central Bank continues to rein in liquidity via its LTRO repayments, but general consensus is emerging that credit conditions are starting to get tight, which could precipitate a rate cut. But, the big driver could actually be the US budget sequester, set to hit tomorrow, March 1”.

At the moment, the cross is losing 0.41% at 1.3085 with the next support at 1.3047 (Ichimoku cloud base) would aim for 1.3041 (low Feb.27) and finally 1.3018 (low Feb.26).
On the upside, resistance levels align at 1.3163 (high Feb.28) ahead of 1.3170 (hourly cloud top) and then the psychological level at 1.3200