Forex: EUR/USD back above 1.2800 as the Eurogroup meeting starts

FXstreet.com (Barcelona) - The market remains very volatile in a back and forth fashion throughout the day. After falling back to 1.2800 mark from 1.2830 high, and reaching as low as 1.2787 on Fed's Lacker comments, the EURUSD bounced back above the psychological level.

The Eurogroup meeting will start at 16:00 GMT and IMF's Lagarde said the Fund will work constructively at today's negotiations about the Greek debt sustainability. Lagarde said over the weekend that the IMF wants a program "that is solid, that is convincing today, that will be sustainable tomorrow, that is rooted in reality and not in wishful thinking".

Fed's Lacker is in favor that the US Congress limits the central bank's credit policy and is against linking the policy to the unemployment rate. The FOMC member warned that larger balance sheets also means bigger chances for mistakes.

"With 4h chart studies indicating further recovery, sustained break above 1.2800 to open next strong resistance zone at 1.2880/1.2900, with interim barrier at 1.2843, Fib 38.2% of 1.3138/1.2660 descend", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to support at 1.2760 zone (Fib 38.2% of 1.2660/1.2818 upleg).