By Fast Brokers – The EUR/USD is trading well off of intraday highs and is fluctuating around its psychological 1.35 area as the Dollar appreciates across the board in reaction to Goldman’s impressive earnings. Meanwhile, the Euro is underperforming despite EU ZEW, PPI, and Current Account data. Today’s positive EU data set, particularly ZEW Consumer Sentiment, provide some relief for the Euro as the region holds together economically despite fiscal troubles in Greece. Speaking of which, chatter is picking up again about Greece with bond yields setting new highs as the focus shifts from China and the U.S. George Soros issued yet another warning regarding his view that the EU’s proposed financial assistance package is insufficient due to the sizable 5% interest rate. Regardless, we may see psychological forces take control of the Euro again soon with financial ministers meeting this week granted air travel opens back up. The EU will be quiet on the data wire tomorrow, meaning the EUR/USD’s near-term performance should reflect broad-based movements in the Dollar along with any new psychological developments regarding Greece or any other fiscally troubled EU nations. Meanwhile, investors should keep an eye on the U.S. news wire as earnings season heats up. Strong U.S. corporate earnings coupled with psychological uncertainty in the EU could place some downward pressure on the EUR/USD despite today’s impressive EU data set.
Technically speaking, the EUR/USD has fresh uptrend lines serving as technical cushions along with intraday and 3/31 lows. As for the topside, the psychological 1.35 now becomes a technical barrier along with an accumulation of downtrend lines and 4/9 highs.
Present Price: 1.3464
Resistances: 1.3473, 1.3485, 1.3496, 1.3506, 1.3521, 1.3530
Supports: 1.3455, 1.3442, 1.3431, 1.3423, 1.3416, 1.3401
Psychological: April highs and lows, 1.35, 1.34
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
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