EUR/USD gaps down on Cyprus uncertainties

EUR/USD has gapped down in early interbank Asia-Pacific weekly open, printing session lows so far at 1.2941, back from previous weekly close Friday around the 1.2990, last at 1.2979, still unable to fill the gap. Negotiations are still taking place in Brussels trying to resolve Cyprus bailout, hours away the ECB deadline kicks in. A Cypriot spokesman has been quoted by different sources saying Cyprus PM Anastasiades and Fin Min Sarris would be dining at the moment with EU's Van Rompouy and Barroso, but without FMI Lagarde and ECB Draghi.

“The banking crisis in Cyprus is reaching a head and with EZ and IMF officials not easing up on their demands, a bank levy on the two biggest Cypriot banks seems inescapable,” says FXWW founder Sean Lee. “I can’t imagine that anybody will want to leave their money in a Cypriot bank even after this crisis is over,” he added. “Technicians will be looking for last Monday’s opening gap to 1.3050 to get closed, but given the current environment in the EZ,” Sean reckons, “I find it hard tobe bullish on EUR/USD,” the analyst concludes.

Immediate resistance to the upside for EUR/USD shows at mentioned Friday's weekly closed yet unfilled at 1.2990, followed by Friday's high 1.3010, and March 14 highs at 1.3035. To the downside, closest support lies at March 08 lows 1.2955, followed by mentioned session lows 1.2940, and March 13 lows at 1.2922.