Breaking through $1.26 has put the euro into an area where there is no clear support level, says RBS's Robert Sinche. "The market was too optimistic going into the [EU] meeting," Sinche says. "This is another disappointment." Sinche notes that $1.2600 was a key retracement level between the 2010 low and 2011 high and now that it was broken, there is no clear sign for further downside. Sinche says the short-term fair valuation for the euro is around $1.22, so it "wouldn't surprise us if it eventually reaches there." The euro is recently down about 0.8% to trade at $1.2583, according to EBS via CQG.
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