Euro on the threshold of key support

The euro started the new week with a sharp drop against the dollar by only a few hours lost 3 cents of its value and close to key support at 200-day MA. Although voted over the weekend to help Ireland amounting to 85 billion euros interest in Spanish and Portuguese government bonds continue to show a growth rates, indicating that investors are less willing to take these two countries due to speculation that they will be next, to resort to financial assistance.
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U.S. leading index registered its strongest week since about a month and again approached their maximum values for that year. Securities received support from the European Central Bank, which reduce investor concerns about the debt problems of the continent. Bullish momentum was fueled by a series of good economic news from the U.S.. On Friday, Federal Reserve Chairman Ben Bernanke endorsed extra “bullish” sentiment, after taking into account that the U.S. economy does not need additional financial incentives.
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