© Dukascopy Bank
"The euro has been on a firm footing. Should European finance ministers agree to beef up the rescue fund, the euro may get a bit firmer."
- Mizuho Securities Co. (based on Bloomberg)
The pair remains pretty resilient after the S&P announcement Greece might require another bailout package to restructure its debt and is capable of approaching the recent high at 1.3449. Inability to move higher would switch focus of the market to the 1.3210/1.3174 area (55-day ma). If bearish mood intensifies, a recent low at 1.3004 might be targeted next.
Traders' sentiment
Bearish expectations incrementally loosened among the market participants compared to yesterday as the share of short orders crawled lower versus the long ones (58.17% vs. 41.83%).
Long position opened
Forex traders holding long positions on EUR/USD should be aware of immediate resistance at 1.3347. A strengthening bullish momentum would encounter R2 at 1.3393 and R3 at 1.3441.
Short position opened
Investors with short positions on the currency pair are likely to faced the immediate support line at 1.3253. In case of a breakthrough, the next levels are located at 1.3226 and 1.3175 accordingly.
© Dukascopy Bank