Forex Analysis : EUR/USD
Euro debt woes should cap upside early this week, with a bailout for Portugal looking increasingly likely.
• The Euro had a mixed week, and Friday’s recovery attempt posted a close at 1.3900.
• A key resistance at 1.3957 will in our view hold out early week and given that plays out we can expect another bearish move to test the following supports – 1.3755 and probably 1.3642
• Major support nearer 1.3590 could be in danger of a retest sooner rather than later if the European debt issues receive a tad more news coverage, or Portugal throws in the towel now rather than wait a while longer for the inevitable to unfold.