19 Aug 2015
EUR/USD recovery stalled near 1.1075, back to 1.1050
FXStreet (Mumbai) - The bid tone around the EUR/USD pair remains intact in the European morning, although the overnight recovery appears restricted near 1.1075 levels and the pair retreated from highs as markets booked profits ahead of the outcome of the Bundestag vote, awaiting fresh incentives from the US data due later today.
EUR/USD: In a wait and see mode
The EUR/USD pair trades 0.25% higher at fresh session highs at 1.1051, easing-off highs reached at 1.1073 in early trades. The major brought a halt to its recovery mode and trimmed gains as traders eagerly await the German vote on the third bailout which may spur fresh bout of EUR buying on Greece optimism.
Earlier this session, EUR/USD spiked to highs near 1.1100 barrier as markets continued to cheer the renewed optimism surrounding Greece after Fitch upgraded Greece's credit rating. Also, risk-sentiment returned to markets as Chinese equities recovered losses and closed in the green today.
However, the gains were capped as focus shifts back to the CPI and the Federal Open Market Committee (FOMC) minutes with both expected to support the USD. While the fact that Greece has to repay $3.5 billion to ECB on Thursday also keeps markets unnerved.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1096 (Aug 18 High) levels, above which gains could be extended to 1.1123 (Aug 16 High) levels. On the flip side, support is seen at 1.1023 (Aug 12 Low) below which it could extend losses to 1.0967 (July 27 Low).
EUR/USD: In a wait and see mode
The EUR/USD pair trades 0.25% higher at fresh session highs at 1.1051, easing-off highs reached at 1.1073 in early trades. The major brought a halt to its recovery mode and trimmed gains as traders eagerly await the German vote on the third bailout which may spur fresh bout of EUR buying on Greece optimism.
Earlier this session, EUR/USD spiked to highs near 1.1100 barrier as markets continued to cheer the renewed optimism surrounding Greece after Fitch upgraded Greece's credit rating. Also, risk-sentiment returned to markets as Chinese equities recovered losses and closed in the green today.
However, the gains were capped as focus shifts back to the CPI and the Federal Open Market Committee (FOMC) minutes with both expected to support the USD. While the fact that Greece has to repay $3.5 billion to ECB on Thursday also keeps markets unnerved.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1096 (Aug 18 High) levels, above which gains could be extended to 1.1123 (Aug 16 High) levels. On the flip side, support is seen at 1.1023 (Aug 12 Low) below which it could extend losses to 1.0967 (July 27 Low).