EUR/USD bounces off 1.0850

FXStreet (Edinburgh) - The intraday decline of the European currency seems to have found decent support in the 1.0850 area, with EUR/USD now reclaiming 1.0875/80.

EUR/USD down from 1.0950

The pair dropped about 100 pips from session tops in the 1.0950 area following the mixed results from the Services PMIs in the euro region and the advance of the Sentix index.

With second-tier releases in the US economy scheduled for today, the focus of attention would remain on Greece in light of the upcoming €450 million repayment to the IMF due on Thursday. In addition, Greece’s deputy finmin insisted on the war reparations by Germany, estimated around €279 billion.

EUR/USD key levels

The pair is now retreating 0.50% at 1.0865 with the immediate support at 1.0834 (low Apr.7) followed by 1.0784 (21-d MA) and then 1.0766 (low Apr.2). On the flip side, a break above 1.0956 (high Apr.7) would open the door to 1.1036 (high Apr.6) and finally 1.1052 (high Mar.26).

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Dmytro Bondar, Technical Analyst at RBS, expects Bunds might see some correction before heading higher towards 159.53.
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