Forex: EUR/USD remains well bid, Greece lurks

FXstreet.com (San Francisco) - The EUR/USD opened up 1 percent from 1.2498 late Friday to 1.2638 at the Asian opening this Monday as markets have responded positively after news that EU authorities have agreed to a 100B euros bailout of Spanish banks.

The pair is virtually unchanged ahead of the Tokyo fix, having so far consolidated between 1.2627 and 1.2666.

The positive sentiment after the Spain news may continue for the next few days, but as we near the end of the week, market focus is expected to return back to the Greek elections on the 17th.

From a technical standpoint, “In the 4 hours chart the upward momentum is quite strong also, with 200 EMA around 1.2720: acceleration above this last should point for stronger gains towards the 1.28 area in the upcoming couple of days,” comments Valeria Bednarik, Chief Analyst at FXstreet.com.

If the pair pushes higher in the hours ahead, resistance levels lie at 1.2685, 1.2720 and 1.2750, while support levels lie at 1.2625, 1.2585 and 1.2550.

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