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UPDATE: EUR/USD struggles to stay above support level

Published 01/26/2010, 07:52 AM
EUR/USD
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EUR/GBP
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The euro struggled to stay above a short term support level against the dollar on Tuesday, as risk aversion increased amid speculation that China would take steps to cool its economy in addition to limiting lending by banks. 

During midday trading in Europe, EUR/USD was hovering around 1.4078 after falling to 1.4067, its lowest rate since Thursday.

Resistance is likely to be found around 1.4179, the daily high. 

The single European currency also erased some of its gains against the pound, with EUR/GBP trading at 0.8726, down from its daily high of 0.8751. 

Against the yen, meanwhile, the euro hovered around 126.25, after hitting a 9-month low earlier in the day at 125.93.

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