The euro weakened after Moody’s Investors Service lowered Ireland’s sovereign debt rating by one notch, fueling demand for perceived safer currencies such as the dollar and Japanese yen.

Fundamental
The euro weakened after Moody’s Investors Service lowered Ireland’s sovereign debt rating by one notch, fueling demand for perceived safer currencies such as the dollar and Japanese yen. The single currency fell against 11 of its 16 most actively traded counterparts as Moody’s today cut Ireland’s rating to Aa2 from Aa1, citing the government’s “gradual but significant loss of financial strength.” The agency has a “stable” outlook on the country’s debt, it said today in an e-mailed statement. Moody’s also cut its rating on Ireland’s so-called bad bank, the National Asset Management Agency, to Aa2 with a stable outlook.

Technical
Technical analysis shows us the Euro may continue its uptrend as MACD bounces on equilibrium level; RSI pointing upwards and Bollinger gives a bullish signal by closing the candle above the middle band.

EUR/USD (Daily Chart)
The primary tendency breaks the trend line upwards.

EUR/USD (4 Hour Chart)
The pair is in a clear uptrend.

EUR/USD (Hourly Chart)
The Minor trend bounces on Bollinger lower band.

Resistance
1.3075
1.3000

Support
1.2850
1.2780