Asian stocks decline for second day in a row; EUR/USD at 3−month low

Tue, Feb 17 2009, 07:01 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) – Asian stock markets have lost ground on Tuesdays session for second consecutive day as investors looked for safety in moments of financial turmoil, the EUR/USD has suffered on risk aversion falling to three months low Life Insurance.

Tokyo’s Nikkei average index lost 1.4% on the back of resignation calls for its finance minister after a rather embarrassing performance at last weekend’s G7 meeting. Australia’s S&P Index lost 1.6%, and Hong Kong’s Hang Seng Index tumbled 3%.

Dollar and Yen Up in Risk Aversion

Down to currencies, EUR/USD has broken a critical support line to fall below the area between 1.2700/1.2720, reaching thus the lowest value since early December. The pair s at the moment trying to pull up from the 1.2615 area. Life Insurance On the downside, 1.2500 area will be on focus, while in case of a successful rebound above 1.2870, the area around 1.3030 could be tested.

The USD/JPY has continued growing break resistance at 92.40, last week’s high. The pair has been growing rather steadily since the 5th of February, therefore, we could advance the possibility of an attempt to reach higher levels, Car Insurance92.80. Jan 8 high. EUR/JPY has been unable to break above 117.20 and has returned below 117.00, while GBP/JPY seems to have managed above resistance at 130.35.

GBP/USD has broken below 142.70 on its withdrawn from 1.4300, losing about 100 pips to fall to levels around 142.00. if the current level gves, selling Car Insurance pressure can take the cross down to test 1.4135 first, and 1.4060.