FXStreet (Buenos Aires) – The EUR/USD pair traded in quite a large intraday range, only to close it a few pips above its opening. Uncertainty surrounding Greece’s future within the EU area is taking its toll on market’s mood, as headlines kept coming all through the day, and from both sides with, as usual, opposed views.
Whilst the Greeks continue to be confident in a soon to come agreement, its creditors are not satisfied with the lack of commitment and the limited reforms, proposed by Greece. In the meantime, German bund yields opened the day strongly higher, sending the pair up to 1.1310, from where it slid down to 1.1213 during US trading hours. In Europe, the release of the first quarter GDP showed the economy grew 0.4%, in line with expectations, with a muted reaction in the market afterwards.
EUR/USD technical perspective
From a technical perspective, Valeria Bednarik, chief analyst at FXStreet notes that the 1 hour chart shows that the pair found buying interest around its 100 SMA earlier in the day, and now struggles around a flat 20 SMA, whilst the Momentum indicator lacks directional strength below the 100 level, whilst the RSI indicator aims higher around 56, leaving room for additional short term advances.
“In the 4 hours chart, the technical outlook is bullish as the price continues to develop above its 20 SMA, whilst the Momentum indicator heads sharply higher above the 100 level and the RSI indicator regained the upside after correcting oversold readings around 59. An advance beyond 1.1300 is required now to confirm such advance, but only above the 1.1345 level the pair will gain enough upward strength to look for fresh monthly highs”.
Support levels 1.1250 1.1210 1.1160. Resistance levels: 1.1300 1.1345 1.1380.
(Market News Provided by FXstreet)