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16 Jul 2015
EUR/USD back above 1.09, but for how long?
FXStreet (Mumbai) - The EUR/USD pair witnessed a weak recovery from the low of 1.0895 to trade around 1.0910, although it remains to be seen if the spot managed to sustain above 1.09 amid diverging monetary policy expectations.
Trade ECB meeting with Bednarik, Elam and Pinkert
Focus on ECB
The investors shall watch out for the ECB President Mario Draghi’s comments on the Greek issue and whether the central bank is ready to act in case of a messy Grexit scenario. Moreover, the ECB presser could once again underscore the growing monetary policy divergence between the Fed and the ECB.
Meanwhile, the pair could also be influenced by the weekly jobless claims data due for release in the US. The second round of Yellen’s testimony is not expected by the markets to provide any major surprises. At the moment, the spot is trading around 1.0910, with the US-German 10-yar yield spread; at 160 basis points; favouring the US dollar.
EUR/USD Technical Levels
The immediate support is seen at 1.09, under which the pair could target 1.0845 (61.8% Fib of Mar-May rally). On the other hand, resistance is seen at 1.0964 and 1.10 handle.
Trade ECB meeting with Bednarik, Elam and Pinkert
Focus on ECB
The investors shall watch out for the ECB President Mario Draghi’s comments on the Greek issue and whether the central bank is ready to act in case of a messy Grexit scenario. Moreover, the ECB presser could once again underscore the growing monetary policy divergence between the Fed and the ECB.
Meanwhile, the pair could also be influenced by the weekly jobless claims data due for release in the US. The second round of Yellen’s testimony is not expected by the markets to provide any major surprises. At the moment, the spot is trading around 1.0910, with the US-German 10-yar yield spread; at 160 basis points; favouring the US dollar.
EUR/USD Technical Levels
The immediate support is seen at 1.09, under which the pair could target 1.0845 (61.8% Fib of Mar-May rally). On the other hand, resistance is seen at 1.0964 and 1.10 handle.