After breaking strongly through the $1.2624 support level -- where massive stop losses had been built up -- markets will watch to see if the common currency holds around these levels, says Carl Forcheski, director of foreign exchange at Societe Generale. "That's something that high-frequency traders look at: Is this a real break or a false break?" he said. If tomorrow's high remains below that $1.2624 level, it would open up the common currency to even more selling. Forcheski also notes that any significant policy announcement (such as a Greek exit) would likely happen on a weekend, and investors may be increasing their euro short positions as the end of the week approaches. EUR/USD recently at 1.2573, down nearly 0.9% on day.
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