EURUSD Primed for a Break Despite Fears of Greece and EU13 July, 2015 by Aayush Jindal in Market Analysis
- Euro remained elevated against the US Dollar despite all fears in the Euro Zone and Greece.
- EU meetings and Greek talks continue, as the Forex market eyes an outcome for the next move.
- Chinese Trade Balance released by the General Administration of Customs of the People’s Republic of China posted a trade surplus of $45.610B, compared with the forecast of $55.700B in June 2015.
EURUSD Technical Analysis
The Euro was seen moving a bit higher against the US Dollar, as the greenback struggled to gain pace in the tensed market. There was no real outcome as of now, as talks in Greece and EU meetings continue during the weekend. The EURUSD pair after trading a touch below 1.1100 managed to gain bids and traded higher. However, there is a bearish trend line formed on the hourly chart, which acted as a barrier for buyers and prevented more upsides.
Moreover, the 38.2% Fib retracement level of the last drop from the 1.1214 high to 1.1091 low is played its part is stopping more gains in the near term. The most important point to note is the fact that the pair is above the 100 and 200 simple moving average on the hourly chart, which is a bullish sign.
The hourly RSI is well above the 50 level, suggesting more upsides in EURUSD. If buyers manage to break the trend line resistance zone, then move towards the last swing high of 1.1214 is possible moving ahead.
Chinese Trade Balance
Earlier during the Asian session, the Chinese Trade Balance, which is a balance between exports and imports of total goods and services was released by the General Administration of Customs of the People’s Republic of China. The market was expecting a trade surplus of $55.700B in June 2015. However, the outcome was on the lower side, as the trade surplus was of $45.610B.
The outcome was disappointing, but there were some positive to note from the report. The main was the fact that the exports grew by 2.8% in June, compared with same month a year ago. The expectation was of a 0.2% decline.
In short, the market is waiting patiently for the outcome in Greece, and the next move might be dependent on the same.