EUR/USD Remains Range Bound above Key Support

<p>EUR/USD (daily chart shown below) has continued to trade within a relatively tight range from Wednesday despite uncertainty surrounding the ongoing Greece negotiations. This range […]</p>

EUR/USD (daily chart shown below) has continued to trade within a relatively tight range from Wednesday despite uncertainty surrounding the ongoing Greece negotiations.

This range follows a sharp decline earlier in the week, when the currency pair plunged from key 1.1400-area resistance down towards major support around the 1.1100 price level and the 50-day moving average.

Since that drop on Tuesday, EUR/USD has thus far remained temporarily tethered to this 50-day MA, and range bound above the 1.1100 support level.

Despite the current range, the currency pair continues to trade within the confines of a longer-term bearish trend that extends back more than a year to the 1.4000-area high in May of last year. Price action has continued to trade well below the significant 200-day moving average, as it has been for the past year. The shorter-term technical picture also remains moderately bearish.

EUR/USD Daily Chart

 

Any impending difficulties with regard to the Greece situation, as well as any resumption of US dollar strength, could provide the impetus for a breakdown below 1.1100 support and a potential continuation of the entrenched bearish trend.

In that event, major downside support targets remain around the key 1.0800 and 1.0500 levels.

To the upside, the noted 1.1400 area should continue to provide strong resistance on any potential news-driven rebound for the currency pair.

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