Forex - EUR/USD lower on safety flight

Investing.com - The euro traded lower against the U.S. dollar Wednesday, following the release of weaker than expected U.S. durable goods data. 
  
EUR/USD hit 1.3278 during U.S. morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.3300, falling 0.10 in U.S. afternoon trade.
  
The pair was likely to find short-term support at 1.3191, Monday’s low and resistance at 1.3384, Tuesday’s high and a one-month high. 
  
Starting the flight to the safety of the greenback, the Commerce Department reported durable goods orders increased 2.2% in February, partially reversing the previous months revised 3.6% decline, but fell short of expectations for a 3.0% increase. 
  
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain. 
  
The information was released one day after Federal Reserve Chairman Ben Bernanke stated that it was still too early to declare victory in the U.S. economic recovery, spurring speculation that the central bank may initiate a third round of monetary easing to support growth.. 
  
The single currency came under pressure earlier after the head of Germany’s central bank said that a larger euro zone bailout fund would not resolve the debt issues in the region and might even make the crisis worse. 
  
Euro zone finance ministers are to hold talks in Copenhagen on Friday, amid speculation that they will reach an agreement on a larger debt firewall to combat the debt crisis in the region. 
  
The euro rose to the session high against the greenback earlier, following upbeat comments by Italian Prime Minister Mario Monti, who said the debt crisis in the euro zone was “almost over.” 
  
The euro was higher against the pound, with EUR/GBP adding 0.41% to hit 0.8383 but remained lower against the yen, withEUR/JPY shedding 0.53% to hit 110.21. 
  
Meanwhile Wednesday, preliminary data showed that German consumer price inflation declined to 2.3% in March, in line with expectations, after rising by 2.5% in February.