6 Jul 2015
EUR/USD recovery capped at 1.1086
FXStreet (Mumbai) - The EUR/USD pair ran through fresh offers near 1090 levels in the European morning, dragging the major lower as sliding European indices reinforced risk-off environment weighing on the shared currency. While markets evaluate the Greek referendum aftermath and its implication on the Euro zone, which keeps the euro pressured.
EUR/USD recovers from 1.0970 weekly lows
The EUR/USD pair trades -0.44% at 1.1062, facing rejection at 1.1086 highs. The major halted tis recovered just shy of 1.11 handle, although filled in the overnight bearish gap on Greek referendum, as European traders react to the Greek NO vote victory and remain wary over Greece’s future in the Euro zone while traders also the emergency Euro group meeting scheduled later today to discuss consequences and probable outcomes post this Greek event.
Moreover, the latest Greece headlines, citing Greek FinMin Varoufakis> surprise resignation also added to the risk aversion seen around the European currency. The main currency pair is expected to remain pressured as markets now eye European Central Bank (ECB) policymakers’ reaction at its meeting on Monday, a week after putting a cap on emergency funding for Greek banks. Emergency Liquidity Assistance (ELA) for Greek lenders is currently capped at €89 billion.
Meanwhile, below estimates German factory orders also keeps EUR/USD in red. Industrial orders in Germany decreased 0.2% in May, measured on a monthly and seasonally adjusted basis, while markets had expected the reading to post 0.4% negative growth.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1086 (Today’s High) levels, above which gains could be extended to 1.1118 (July 3 High) levels. On the flip side, support is seen at 1.0994 (Today’s Low) below which it could extend losses to 1.0970 (July 5 Low) levels.
EUR/USD recovers from 1.0970 weekly lows
The EUR/USD pair trades -0.44% at 1.1062, facing rejection at 1.1086 highs. The major halted tis recovered just shy of 1.11 handle, although filled in the overnight bearish gap on Greek referendum, as European traders react to the Greek NO vote victory and remain wary over Greece’s future in the Euro zone while traders also the emergency Euro group meeting scheduled later today to discuss consequences and probable outcomes post this Greek event.
Moreover, the latest Greece headlines, citing Greek FinMin Varoufakis> surprise resignation also added to the risk aversion seen around the European currency. The main currency pair is expected to remain pressured as markets now eye European Central Bank (ECB) policymakers’ reaction at its meeting on Monday, a week after putting a cap on emergency funding for Greek banks. Emergency Liquidity Assistance (ELA) for Greek lenders is currently capped at €89 billion.
Meanwhile, below estimates German factory orders also keeps EUR/USD in red. Industrial orders in Germany decreased 0.2% in May, measured on a monthly and seasonally adjusted basis, while markets had expected the reading to post 0.4% negative growth.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1086 (Today’s High) levels, above which gains could be extended to 1.1118 (July 3 High) levels. On the flip side, support is seen at 1.0994 (Today’s Low) below which it could extend losses to 1.0970 (July 5 Low) levels.