The EUR/USD pair slipped below 1.12 for a brief moment before quickly moving back to 1.1205 amid weak data and fears of Greek crisis.
Eyes Greek yields
Greek yields spiked on Monday on reports that country’s bailout talks stalled. Investors fear the sharp rise in Greek yields may be an indication the country’s debt crisis is ready to erupt again. Consequently, the common currency is unable to benefit from the risk-off mood in the markets.
Meanwhile, the data released today showed the Eurozone industrial production contracted in December and the trade surplus contracted. The weaker data did little to cheer the EUR bulls.
EUR/USD Technical Levels
A break below the immediate support of the hourly 50-MA at 1.1163 would shift risk in favor of a drop to the double top neckline at 1.1088. On the other hand, resistance is seen at 1.1236 (38.2% of Mar low-Aug high) ahead of the major hurdle at 1.1293 (May 2014 high-Mar 2015 low).
(Market News Provided by FXstreet)