Forex: EUR/USD slightly above flat ahead of Eurogroup meeting

FXstreet.com (Barcelona) - Early European flows sent the EURUSD to as low as 1.3312, only to bounce back to 1.3320/25 as the equity markets open. The pair found resistance at 1.3400 surrounding area in almost every day last week and the question is whether the market is now getting ready for a new attempt or will it give up and ease lower. As of writing, the EURUSD trades slightly above flat.

The Eurogroup meeting is today and may be the main market focus as there is no top-tier data today: "We expect to see discussions on aid forCyprus, the financial transaction tax, andwatering down furtherthe June 2012 pledge to "break the vicious circle between banks and sovereigns", wrote analyst Alvin Pontoh, also expecting Juncker's replacement to be named today.

"Above 1.3405, we look for gains towards tough long term resistance at 1.3485/1.3560 this is the location of the 2012 high, a double Fibonacci retracement the 200 week moving average and the 55 MONTH moving average. We look for this to hold the topside and provoke failure", wrote Commerzbank analyst Karen Jones, while below 1.3250/00 support, the market would range and head back to the base of the channel at 1.3091, with key support at 1.3048 - the 6 month uptrend.