Forex: EUR/USD holding below 1.30 ahead of an agreement over Greece
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EUR/USD
FXstreet.com (Barcelona) - EURUSD is currently flat at where it closed last week Friday at 1.2973, off premarket interbank lows at 1.2958, after a +1.81% gain since past Monday. Markets are expecting a positive outcome of later on Eurogroup meetings over next aid tranche for Greece, while Spain's Catalonia regional elections results are not showing exactly what separatists would have liked.
In the technical front for the common currency though: "After spending most of the month below the technically important $1.28 area, the euro jumped back above last week. A rounded bottom has been carved out and the $1.2840 area should now offer support," says Marc Chandler, Global Head of Currency Strategy at BBH, who expands: "On the upside, the next test of the bulls' resolve will be in the $1.3000-30 area. The potential downtrend drawn off the mid-Sept and mid-Oct highs comes in near $1.31 by the end of the month. Technical indicators, like RSI and MACDs, are constructive and the 5-day moving average crossed above the 20-day average at the end of last week, suggesting short-term models and momentum traders are getting positive signals," Marc concludes.
Immediate resistance to the upside for EURUSD shows at Friday's high 1.2991, followed by March 15 lows at 1.3001, and Oct 31 highs at 1.3021. To the downside, nearest term support lies at Sept 20 lows/55 day SMA 1.2917, followed by Friday's lows/200 day EMA at 1.2865, and Oct 10 lows/Nov 20-21 highs at 1.2830.
In the technical front for the common currency though: "After spending most of the month below the technically important $1.28 area, the euro jumped back above last week. A rounded bottom has been carved out and the $1.2840 area should now offer support," says Marc Chandler, Global Head of Currency Strategy at BBH, who expands: "On the upside, the next test of the bulls' resolve will be in the $1.3000-30 area. The potential downtrend drawn off the mid-Sept and mid-Oct highs comes in near $1.31 by the end of the month. Technical indicators, like RSI and MACDs, are constructive and the 5-day moving average crossed above the 20-day average at the end of last week, suggesting short-term models and momentum traders are getting positive signals," Marc concludes.
Immediate resistance to the upside for EURUSD shows at Friday's high 1.2991, followed by March 15 lows at 1.3001, and Oct 31 highs at 1.3021. To the downside, nearest term support lies at Sept 20 lows/55 day SMA 1.2917, followed by Friday's lows/200 day EMA at 1.2865, and Oct 10 lows/Nov 20-21 highs at 1.2830.
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