EUR/USD in holding pattern below 1.1100 before Greece proposals
James Chen July 10, 2015 12:16 AM
<p>EUR/USD (daily chart shown below) has bumped up against key 1.1100 resistance several times during the current trading week, but has repeatedly retreated, unable to […]</p>
EUR/USD (daily chart shown below) has bumped up against key 1.1100 resistance several times during the current trading week, but has repeatedly retreated, unable to close above this level as of Thursday. With the post-referendum drama in Greece continuing to impart uncertainty on the euro, the EUR/USD currency pair has been trading within a relatively tight range under 1.1100, seemingly with a wait-and-see anticipation.
Currently trading lower on Thursday, EUR/USD remains limited to the upside and well below both its 200-day and 50-day moving averages. From a longer-term perspective, EUR/USD has been entrenched in an unmistakable bearish trend for the past 14 months.
From a shorter-term perspective, the past three weeks have seen a volatile and choppy slide from the major 1.1400 resistance area as Greece’s prospects fluctuated while the US dollar generally continued to strengthen.
With Greek reform proposals and negotiations impending, the euro could see major moves before and into the weekend based upon these developments.
While any positive developments may prompt an upside move for the EUR/USD, the outlook for the currency pair remains bearish overall. The current downside target for any such bearish move resides at the key 1.0800 support level, with a further target at the major 1.0500 support area, which is around the pair’s March multi-year lows. Any sustained break above 1.1100 should be limited to the upside by major resistance around the noted 1.1400 level.
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