Early in the session the battle was fierce, the EUR/USD collapsed to 1.2735 following the no-news eurogroup event but the pair bounced from lows and returned to the 1.2800 comfort zone where it has been trading within the American session hours, having hit a new 2-week high of 1.2831 during the American session.
The euro seems detached from fundamentals lately as despite eurozone woes are far from over and no decision was made neither on Greek debt nor Spanish bailout, the EUR/USD continues to find buyers on dips. "With Eurogroup finance ministers unable to come to an agreement on Greece, the EURUSD has remained in relative consolidation for the second day in a row," points Richard Lee, FXstreet.com analyst.
"The range trade has kept hopes alive that the single currency could be privy to some upside potential very soon. But, even as policymakers are scheduled to reconvene on November 26th to decide the fate of Greece, there is ample opportunity for Euro bears to pounce," adds Lee who comments the possibilities of a "EpicFail."
As for the short term, thin trade and bouts of volatility are thus expected throughout the rest of the week, as Friday’s session will be shorter than usual. However, EUR/USD bullish tone persists, "with the pair trading at fresh weekly high and nearing 1.2840, 38.2% retracement of the latest daily fall," comments FXstreet.com Chief Analyst Valeria Bednarik. "Steady gains above this last will expose the 1.2890/1.2900 static resistance zone."
There is "The frustrating ranges" persisting in the EUR/USD comments RBS's Technical Markets Strategist William Moore. “The short-term range between 1.2806 and 1.2742 looks under threat – as this was defined by the important low on October 1 and the 38.2% retracement from the July September rally. In line with the recent ranges, this looks good value for a small long here expecting a 40/50 pip run back to 1.2806+ where the fade once again becomes the chosen strategy.” Moore suggests.
Just as reminder, US markets will remain closed on Thursday and will close earlier on Friday at 13:00 ET (18:00 GMT).