Forex: EUR/USD steadies above 1.2700

FXstreet.com (Córdoba) - Following a choppy trading day where Greek headlines drove FX markets action, EUR/USD finally settled inside a very tight range just above the 1.2700 mark during the American afternoon. At time of writing, EUR/USD is trading at the 1.2700/10 zone where it is virtually unchanged since opening, having hit a fresh 2-month low of 1.2660 during the European trade.

Even though eurozone finance ministers agreed on Monday to give Greece an extra two years to reach its deficit targets uncertainty on how, when, and under what terms Greece will receive its next round aid persists.

From a technical view, "Recovery attempts through 1.2700 were so far capped by descending 4h 20 day EMA at 1.2725 and below 1.2740, yesterday’s high and Fib 38.2% of 1.2875/1.2660 descend", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "As long as the latter stays intact, the downside will remain vulnerable, as hourly negative tone keeps the scenario of fresh weakness through 1.2660 that will open 1.2606, 50% of 1.2042/1.3170, next".

Conversely, rally through 1.2740 would shift near-term focus towards more significant 1.2780/1.2800 barriers, the analyst added.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS