By Fast Brokers – The EUR/USD is hanging around its psychological 1.36 area as FX markets yield limited activity due to a relatively quiet data wire. The Euro did receive a bit of good news today in the fact that Greece’s debt auction received more buyers than anticipated, implying renewed investors confidence in the region following the EU’s $40 billion aid offer. However, Pimco’s El-Erian said that the investing giant is not interested in Greek bonds under the assumption that the EU’s offer will prove insufficient in abating Greece’s fiscal crisis. Therefore, investors are receiving mixed signals on the news wire today, keeping the EUR/USD range bound. Additionally, a cool down from yesterday’s topside breakout is reasonable as investors lock in profits. That being said, it will be important to see the EUR/USD sustain its upward momentum so that this week’s upswing can develop into a more reliable uptrend. The EU will be quiet on the data wire tomorrow, leaving the EUR/USD under the near-term influence of U.S. data and comments from Bernanke. The U.S. will release Retail Sales and CPI data, which each tend to have a considerable impact on the greenback across the board. Hence, investors should gauge the Dollar’s reaction to tomorrow’s data flow, particularly if it prints better than expected. Strong U.S. data could lead investors to the Dollar via comparative economic strength. Investors will also be digesting earnings data as the reports kick off.
Technically speaking, despite today’s upswing the EUR/USD faces fresh downtrend lines along with intraday, 3/3, and March highs. As for the downside, the EUR/USD has new uptrend lines serving as technical cushions along with intraday and 3/5 lows. Additionally, the psychological 1.36 and 1.35 levels could serve as technical cushions for the near-term.
Present Price: 1.3591
Resistances: 1.3597, 1.3613, 1.3624, 1.3632, 1.3642, 1.3655
Supports: 1.3586, 1.3577, 1.3563, 1.3551, 1.3540, 1.3531
Psychological: April and March highs, 1.35, 1.36, 1.37
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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