EUR/USD Forecast: Modestly bullish but limited by 1.1130/50


EURUSD

The euro remains steady in the market and holding near the levels it had a week ago ahead of another weekend that could be important regarding Greece. Sunday’s referendum could set the start of the next week with volatility. The vote and the statements will be closed followed. Yesterday Yanis Varoufakis said that he would resign if the “yes” wins; a “no” majority could give political support to Tsipras but would increase uncertainty about the future of Greece in the Euro zone. 
The pair is moving higher on Friday, with the US dollar falling versus European currencies. EUR/USD currently is testing Thursday’s highs and attempting to rise above the 20-SMA. Below 1.1130 the upside should remain limited while a break higher would trigger a test of the bearish trendline that stands at 1.1160 (also where the 55-SMA is seen). A rupture of the line would be supportive of a bullish continuation. If it continues, resistances are seen at 1.1220 and 1.1270. 
The bias that favors the euro in the short-term has a key support at 1.1090 where the hourly 20-SMA and an uptrend line stand. A break below would remove the bullish bias and it could open the door for a test of 1.1030.

View live chart of the EUR/USD

Considerable moves are not expected for the coming hours (US holiday) but if happens, a weekly close below 1.0970, from a technical perspective would be negative for the euro, signaling a continuation to the downside with a probable target at 1.0700 – 1.0720. 


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