FXStreet (Guatemala) – EUR/USD is currently trading at 1.1165 with a high of 1.1170 and a low of 1.1154.
EUR/USD has been a downside play despite positive sentiment around Greece and despite poor US data. An overstretched and long euro is the culprit and has been a due a correction on June business that has been exaggerated on little in the way of fundamentals. There is an element of safe haven status driving the greenback and higher yields that have made a recovery.
In respect of Greece, only those who are at the negotiating table know the details but markets are getting drip-fed sentiment from these EU heads and it appears that there is a sense of urgency from all sides to come to an agreement that will allow Greece to stay in the EZ and a deal is scheduled to be agreed upon this week.
Another Eurogroup meeting is scheduled for tonight in Europe and markets will be urging for details as we progress through the week. Without them, the outcome remains uncertain and the euro will remain at risk to a sell off if investors begin to lose faith in a positive outcome for both Greece and the EZ ‘project’.
EUR/USD technically bearish sub 1.1275
Technically, on a recovery in the major, EUR/USD bulls would likely find strong resistance at the May high and February high at 1.1444/1.1534. Meanwhile, below the 1.1275 the market remains offered and the 1.1052 26th March high is exposed.
(Market News Provided by FXstreet)