Forex: EUR/USD quiet after reports of Troika's take on Portugal

The EUR/USD has been trading under a tight range on Monday and has fallen below the 1.3000 line to reach as low as 1.2988 ahead of the NY opening only to bounce back to where it was.

According to Reuters, the Troika (IMF, EU and ECB inspectors) are due to agree to an extension of the maturity of Portugal’s bailout loans until 2015, as they acknowledge Lisbon’s efforts to meet the bailout program requirements so far, but they also note the adverse impact of the recession in Europe on the Portuguese economy.

The pair doesn't seem much affected by these reports. On Thursday, the EU Summit will handle the Cyprus program, easing repayment plans for Ireland and Portugal, and bank recapitalizations from the ESM. On Friday, the new Italian Parliament will be sworn in and the Italian President will start formal meetings with parties next week on forming a government.

“The break below 1.3080 support signaled, that a top is in place at 1.3133 and my outlook here is negative, for a slide towards 1.2880”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to initial resistance at 1.3050-70 ahead of 1.3133.