Euro falls in Asia on european debt crisis

Ongoing concerns about the sovereign debt crisis in Europe led the the euro to fall in Asian trading, while the dollar also struggled after minutes of the U.S. Federal Reserve΄s meeting stregthened expectations for more stimulus. Commodity currencies like the New Zealand dollar rose. The euro fell broadly, particularly against commodity currencies, after light demand at an Italian bond auction threatened to push the country’s economy back to the centre of the region΄s debt crisis. Data in Europe showed economic sentiment fell more than expected in August and a dispute over Findland΄s demand for collaterals in exchange for bailout loans to Greece continued to worry investors.
The euro was trading around 1.4436, having touched a low of 1.4383. The dollar was under pressure after minutes of the Fed΄s meeting showed policymakers discussed a range of unusual tools they could use to help the economy.

 EURJPY (1 Hour chart)

The pair broke support at 111.00 after reaching 111.90 high on Monday. Found support at 110.42. Failure to hold this level will give more downside pressure targeting 110.09. Resistance is found now at 111.00 and above that at 111.45.