10 Feb 2015
EUR/USD: Buying interest at 1.1250/60 - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that following a beginning of the week dominated by fears and risk aversion, the market mood changed on Tuesday as some rumors circulate that the EU Commission was working on a deal with Greece, that might stave off a Grexit.
Key Quotes:
"With no actual confirmations on the news, word circulated that the deal was designed to avoid the troubled country falling into default as soon as next Feb 28, and that was enough to trigger strong comebacks in all majors indexes in Europe and America. Mid American afternoon however, a senior European official denied the existence of a plan leaving the EUR in quite a vulnerable situation across the board, with the EUR/USD pair barely holding around the 1.1300 mark. Also, FED's Lacker said that and US rate hike in June looks ´attractive´, giving the greenback some limited support."
"From a technical point of view, the short term picture continues to favor the downside, as the 1 hour chart shows that the price develops below its 20 SMA whilst the indicators aim slightly lower below their mid-lines. In the 4 hours chart the overall picture also favor the downside, as the 20 SMA maintains a bearish slope above the current price, and indicators hold below their midlines, albeit directionless."
"The pair has been finding buying interest in the 1.1250/60 price zone ever since the month started, becoming then the key support to break to confirm another leg south towards the 1.1200 figure."
Key Quotes:
"With no actual confirmations on the news, word circulated that the deal was designed to avoid the troubled country falling into default as soon as next Feb 28, and that was enough to trigger strong comebacks in all majors indexes in Europe and America. Mid American afternoon however, a senior European official denied the existence of a plan leaving the EUR in quite a vulnerable situation across the board, with the EUR/USD pair barely holding around the 1.1300 mark. Also, FED's Lacker said that and US rate hike in June looks ´attractive´, giving the greenback some limited support."
"From a technical point of view, the short term picture continues to favor the downside, as the 1 hour chart shows that the price develops below its 20 SMA whilst the indicators aim slightly lower below their mid-lines. In the 4 hours chart the overall picture also favor the downside, as the 20 SMA maintains a bearish slope above the current price, and indicators hold below their midlines, albeit directionless."
"The pair has been finding buying interest in the 1.1250/60 price zone ever since the month started, becoming then the key support to break to confirm another leg south towards the 1.1200 figure."