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22 Apr 2015
EUR/USD expected to remain stuck in the 1.0686-1.0767 range – FXStreet
FXStreet (Barcelona) - EUR/USD will remain driven by Greece related sentiment and a default risk might weigh heavily on the single currency, but for today the pair is expected to trade in the 1.0686-1.0767 range, views Omkar Godbole, FXStreet Editor and Analyst.
Key Quotes
“Amid the absence of a major market moving fundamental report, the EUR/USD pair is likely to take cues from the Greek issue. The EUR recovered losses in the previous session after the Greek finance minister Varoufakis said there are clear signs that Greece, and its EU/IMF lenders are likely to reach a deal. However, Germany is likely to refuse releasing additional bailout funds without a credible reform plan.”
“If Greece fails to secure a bailout, the IMF's May 12th payment and the ECB/IMF/Treasury Bill payments in June and July will be at risk. Such an event could weigh heavily on the EUR.”
“Moreover, the uncertainty about the future is quite evident from the German Zew survey released on Tuesday, which showed the future expectations index declined for the first time in six months.”
“On the charts, the pair is currently stuck at its hourly 100-MA located at 1.0745, with the hourly RSI bullish at 54.58. A break above 1.0755 (50% Fib retr. of 1.0461-1.1050) and 1.0767 (5-DMA) could push the pair higher to 1.0824 levels.”
“On the other hand, a break below 1.0686 (61.85 Fiib retr. Of 1.0461-1.1050) could drive the pair lower to 1.06 levels.”
“Given the absence of a major market moving data, we could see the pair being restricted to a range of 1.0767-1.0686.”
Key Quotes
“Amid the absence of a major market moving fundamental report, the EUR/USD pair is likely to take cues from the Greek issue. The EUR recovered losses in the previous session after the Greek finance minister Varoufakis said there are clear signs that Greece, and its EU/IMF lenders are likely to reach a deal. However, Germany is likely to refuse releasing additional bailout funds without a credible reform plan.”
“If Greece fails to secure a bailout, the IMF's May 12th payment and the ECB/IMF/Treasury Bill payments in June and July will be at risk. Such an event could weigh heavily on the EUR.”
“Moreover, the uncertainty about the future is quite evident from the German Zew survey released on Tuesday, which showed the future expectations index declined for the first time in six months.”
“On the charts, the pair is currently stuck at its hourly 100-MA located at 1.0745, with the hourly RSI bullish at 54.58. A break above 1.0755 (50% Fib retr. of 1.0461-1.1050) and 1.0767 (5-DMA) could push the pair higher to 1.0824 levels.”
“On the other hand, a break below 1.0686 (61.85 Fiib retr. Of 1.0461-1.1050) could drive the pair lower to 1.06 levels.”
“Given the absence of a major market moving data, we could see the pair being restricted to a range of 1.0767-1.0686.”