EUR/USD Tests $1.3300

Earlier the pare fell on the back of the fears that Greece will not be able to meet its key obligations before the EU and the IMF on both current and next years’ deficit reduction, as well as because of the concerns over a global economic slowdown. 

Goldman Sachs Group Inc. lowered its global economic growth forecast for the current and the next years, projecting recessions in Germany and France on the back of weakening sovereign economies and risks related to problems in the USA. According to new projections, world economy will grow by 3.8% this year and by 3.5% in 2012, versus 3.9% in 2011 and 4.2% in 2012 in previouse forecast. 
Tuesday morning Eurogroup President Jean-Claude Junker stated that a special Eurogroup meeting scheduled for Oct 13 had been cancelled. The meeting was to have resolved the issue of whether to extend another bailout loan, in amount of EUR 8 billion, to Greece. 

Junker stated that the Eurogroup decided to cancel the meeting as inspectors from the European Commission, ECB and IMF will not have had enough information to take a decision on the next loan by that time. 

EUR/USD tried to overcome the phsycologically important level of $1.3300 before having returned to the middle of the afternoon range. The nearest resistance stays at around $1.3310/20, above which the area of Sep 26 lows at $1.3360 (now being resistance) will become the bulls’ new target. For a new wave of growth to take place, the pair has to take hold at above Monday high, being $1.3380. The nearest support lies close to the bottom Bollinger line at the afternoon ranges of $1.3210. Below is the area of the hourly and session lows at $1.3165/45, which reaching will launch the rate towards the area of Dec 2010 lows at $1.3070/55.