FXStreet (Mumbai) – The EUR/USD pair has recovered to trade around 1.1190 as Greece related news flow overshadowed the better-than-expected US Michigan consumer sentiment index.
USD being traded like a risk currency
The shared currency was sold on reports that Greece is nearing the deal with its international creditors, while the US dollar was pushed higher across the board, since the Fed, due to strong domestic economy, is nearing an interest rate hike. A solution to Greece crisis only brings the Fed one step closer to a lift-off from record low interest rates.
However, the EUR/USD pair recovered from the low of 1.1153 to trade near 1.1190 as fresh reports say Greece rejected a five month extension of the bailout program. Consequently, the riskier assets, including the USD pared gains. Moreover, amid all the noise about Greece, the upbeat Michigan confidence index (actual 96.1, exp 94.6) was ignored.
EUR/USD Technical Levels
The immediate resistance is seen at 1.1204 (23.6% Fib R of 1.1434-1.1133), above which the pair could target 1.1248 (38.2% R). On the flip side, a break below 1.1178 could see the pair re-test the daily low at 1.1153.
(Market News Provided by FXstreet)