Tax efficient CFD trading
Yesterday morning's post-bailout highs of $1.2650 were a distant memory for the euro, as concerns shifted from Spain to Greece.
Both Spanish and Italian ten-year government bond yields were trading above 6% this morning, uncomfortably close to the 7% level that has been perceived as unsustainable. However, investors will be reluctant to short the currency ahead of the Greek polls this weekend. If the pro-bailout parties come back to power we could see a relief rally for the euro. EUR/USD has been struggling to break its 20-day moving average (MA) of $1.2527 this morning.
Should the currency pair breach this level, the next level of resistance is at $1.2680. Signs of support can be seen at $1.2360, should the forex pair turn downwards.