FXStreet (Barcelona) – Valeria Bednarik, Chief Analyst at FXStreet, gives the technical outlook and key levels for EUR/USD, noting that 4H technicals suggest the upside for the pair will stand limited.
Key Quotes
“The EUR/USD pair recovered most of its early day losses, trading above the 1.1100 figure ahead of the US opening, having almost filled the weekly opening gap. A Grexit became real over the weekend, triggering risk-adverse trading in the forex market: the Japanese Yen and the Swiss Franc were on demand, but the latest reverted temporarily its gains as the SNB intervene the market to prevent Swissy strength. Nevertheless, both the EUR and the CHF continue advancing against the greenback, with the EUR/USD pair trading near its daily high.”
“The short term technical picture favors the upside, as the price has extended above its 20 SMA whilst the technical indicators aim higher near overbought levels.”
“In the 4 hours chart, the 20 SMA caps the upside around 1.1160, whilst the technical indicators have corrected extreme oversold readings, and are now turning slightly lower in negative territory, suggesting further advances will likely remain limited.”
“Support levels: 1.1090 1.1050 1.1010”
“Resistance levels: 1.1160 1.1200 1.1245”
(Market News Provided by FXstreet)