FTS- Forex Trade: After yesterday’s downside pressure, with even a spike to 1.2956 low, the EUR/USD was able to find support at 1.2975 and bounced back above the 1.3000 psychological level. More corrective movement during the Asian session allowed a rise to 1.3060 and now the pair is extending gains towards the 1.3080 resistance area (April 21/22/23 highs). The market is currently as high as 1.3076.

German Chancellor Merkel wants that bank shareholders can also suffer losses in the future and said the government rejects common European deposit insurance, for now. Also, she said that higher interest rates would be better for Germany. Finland grand committee head said the Euro would survive in case Cyprus leaves and rejects euro-area fiscal transfers. IMF’s Lipton and PIMCO’s Amey suggested more ECB easing.

The US session will have jobless claims and Kansas Fed manufacturing activity on the economic calendar. “Markets are looking for weekly jobless claims to remain more or less unchanged at 352K this week”, wrote TD Securities analyst Annette Beacher.

“The intraday outlook is bullish above 1.3025 support zone, for a rise towards 1.3120”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to key support at 1.3000 and that a slide below that zone will state that the downtrend from 1.3200 is intact and will target 1.2890.