The American currency extended its decline during the Asian session, as Australian employment data came out much better than expected, boosting high yielders. The EUR/USD pair surged to a fresh weekly high of 1.0764, but retreated sharply to negative territory with the European opening. There were no macroeconomic releases in Europe to affect the common currency, but is all about Greece today: Athens is due to pay almost €1 billion to the IMF during the first days of May, and clearly, the country can't afford it without the EZ assistance. Furthermore, late Wednesday ratings agency S&P has downgraded Greece's credit rating again, to CCC+/C from B-/B, saying the country's financial commitments are "unsustainable."
The possibility of a Greece default, was fueled by a local newspaper, saying that the New Democracy party believes that a Greek exit is possible, and by German Finance Minister Wolfgang Schaeuble who ruled out further concessions to Greece, saying it’s up to the Greek government to commit to the reforms needed to release aid. ECB's Mario Draghi, said pretty much the same on Wednesday in the Central Bank economic policy meeting, when asked by a journalist.
The technical picture shows that, in the 4 hours chart, the pair has failed to sustain gains above the 61.8% retracement of its latest bullish run, and trades in the 1.0640 region, with the immediate support is at 1.0620, where the pair has established its daily low and where the 20 SMA aims slightly higher in the mentioned time frame. The technical indicators present a nice bearish slope, but remain above their mid-lines, suggesting additional declines below the mentioned 1.0620 level are required to confirm a new leg lower, towards 1.0550, next strong static support level. A break below it should lead to an approach to the 1.0500 figure. To the upside, the immediate resistance comes at 1.0690, the 61.8% retracement of the latest bullish rally, with some gains above it favoring a retest of the 1.0750/60 price zone.
View Live Chart for EUR/USD
The possibility of a Greece default, was fueled by a local newspaper, saying that the New Democracy party believes that a Greek exit is possible, and by German Finance Minister Wolfgang Schaeuble who ruled out further concessions to Greece, saying it’s up to the Greek government to commit to the reforms needed to release aid. ECB's Mario Draghi, said pretty much the same on Wednesday in the Central Bank economic policy meeting, when asked by a journalist.
The technical picture shows that, in the 4 hours chart, the pair has failed to sustain gains above the 61.8% retracement of its latest bullish run, and trades in the 1.0640 region, with the immediate support is at 1.0620, where the pair has established its daily low and where the 20 SMA aims slightly higher in the mentioned time frame. The technical indicators present a nice bearish slope, but remain above their mid-lines, suggesting additional declines below the mentioned 1.0620 level are required to confirm a new leg lower, towards 1.0550, next strong static support level. A break below it should lead to an approach to the 1.0500 figure. To the upside, the immediate resistance comes at 1.0690, the 61.8% retracement of the latest bullish rally, with some gains above it favoring a retest of the 1.0750/60 price zone.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.