12 May 2015
EUR/USD bullish, but limited by Greece related concerns – FXStreet
FXStreet (Barcelona) - With Greece having met the IMF repayment, fresh concerns have risen related to dwindling cash reserves of the country, which are limited upside gains for EUR/USD, notes Valeria Bednarik, Chief Analyst at FXStreet.
Key Quotes
“The dollar is sharply lower across the board this Tuesday, with the market reacting to Greece's payment of €750M to the IMF, ordered by Yanis Varoufakis late Monday. European stocks are down, commodities soaring, whilst US and German bond yields surged on investor's appetite for risk.”
“The EUR/USD pair got benefited from the positive environment, surging to a fresh 2-day high of 1.1278.”
“In the meantime, EU Finance Ministers continue to discuss the Greek debt situation. News however that the country's reserves stand at roughly €90m and that they are going to be unable to pay salaries at the end of May, are driving the common currency lower ahead of the US opening.”
“the pair retreated from the high and trades around its 100 SMA in the hourly chart, whilst the 20 SMA heads strongly higher in the 1.1180 price zone, as the technical indicators correct overbought readings, but remain well into positive territory.”
“In the 4 hours chart the 20 SMA maintains a bearish slope below the current price whilst the technical indicators also turned south and pressure their mid-lines, still far from signaling another leg south.”
“Support levels: 1.1215 1.1180 1.1145”
“Resistance levels: 1.1280 1.1320 1.1365”
Key Quotes
“The dollar is sharply lower across the board this Tuesday, with the market reacting to Greece's payment of €750M to the IMF, ordered by Yanis Varoufakis late Monday. European stocks are down, commodities soaring, whilst US and German bond yields surged on investor's appetite for risk.”
“The EUR/USD pair got benefited from the positive environment, surging to a fresh 2-day high of 1.1278.”
“In the meantime, EU Finance Ministers continue to discuss the Greek debt situation. News however that the country's reserves stand at roughly €90m and that they are going to be unable to pay salaries at the end of May, are driving the common currency lower ahead of the US opening.”
“the pair retreated from the high and trades around its 100 SMA in the hourly chart, whilst the 20 SMA heads strongly higher in the 1.1180 price zone, as the technical indicators correct overbought readings, but remain well into positive territory.”
“In the 4 hours chart the 20 SMA maintains a bearish slope below the current price whilst the technical indicators also turned south and pressure their mid-lines, still far from signaling another leg south.”
“Support levels: 1.1215 1.1180 1.1145”
“Resistance levels: 1.1280 1.1320 1.1365”