Coz forex: For the past trading session to 23:00 GMT, EUR rise 0.56% against the USD and closed at 1.2932, during speculation that a ratings downgrade on Spain by Standard & Poor’s would compel Madrid to formally request a bailout, which investors speculated would ease the debt crisis in the Euro-zone.

The European Central Bank (ECB), in its monthly bulletin, indicated that the governments should continue to implement necessary measures to reduce both fiscal and structural imbalances. The ECB observed that the risks surrounding the economic outlook continue to be on the downside. The bank stated that the underlying pace of monetary expansion remains subdued.

The International Monetary Fund (IMF) backed giving debt-burdened Greece and Spain more time to reduce their budget deficits, cautioning that cutting too far, too fast would do more harm than good, further supporting the sentiment towards Euro.

However, the German Finance Minister, Wolfgang Schaeuble said that the Euro-zone governments would not share losses on Greek debt holdings. He said that finance chiefs from around the world meeting in Tokyo this week have acknowledged that Europe has made “significant progress” in overcoming the crisis of confidence in the Euro.

In bond auction, Italian treasury sold €3.75 billion of its three-year benchmark BTPs. The yield climbed to 2.86% from 2.75% at the prior auction on September 13. It also raised €2.25 billion from the issue of bonds maturing in 2016, 2018 and 2025. The yield on 2016 bonds came in at 3.42% and that on 2018 bonds at 4.06%. The 2025 bonds had an yield of 5.24%.

The pair is predicted to find support at 1.2864, and a fell through could take it to the next support line of 1.2801. Also, the pair is predicted to find its first resistance at 1.2971, and a rose through could take it to the next resistance line of 1.3015. (Cozforex UK)

Cozforex Chart:

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