Forex Pros – The euro extended losses against the U.S. dollar on Wednesday, falling to a fresh daily low as clashes in Bahrain escalated and the Japanese nuclear crisis worsened.
EUR/USD hit 1.3927 during European late morning trade, the daily low; the pair subsequently consolidated at 1.3937, shedding 0.43%.
The pair was likely to find support at 1.3854, Tuesday’s low and resistance at 1.4035, the high of March 7 and a four-month high.
Earlier in the day, Bahraini security forces cracked down on anti-government protesters, clearing demonstrators from a central square that had become the symbol of an uprising by the island’s Shi’ite Muslim majority.
Meanwhile, Japanese authorities were attempting to contain the fallout from the stricken Fukushima Daiichi nuclear plant, in the wake of last week’s earthquake and tsunami.
Earlier, staff returned to work at the plant, located 155 miles north east of Tokyo, after a rise in radiation levels following a fire forced them to temporarily abandon the facility.
The euro was also lower against the yen, with EUR/JPY shedding 0.46% to hit 112.46.
Also Wednesday, Moody’s Investor Services announced a downgrade of Portugal’s long-term government bond ratings, saying the country will continue to face low growth and funding pressure for years, even if it tapped the European Union’s bailout fund.
ForexPros.com
