EURUSD Rockets High on Greek Deal Hopes Ahead of ECB Meeting

Key Highlights

  • Euro surged higher Intraday against the US Dollar, rallying some 250 pips from its low.
  • Greek PM Alexis Tsipras mentioned that they presented a realistic plan for an agreement, which kind of increased hope of a Greek deal.
  • EURUSD rocketed higher to trade near 1.1200 and awaits ECB meeting for further action.

EURUSD – Technical Analysis

The Euro performed very well versus most major currencies, and traded higher as the chances of Greek deal escalates. The EURUSD pair climbed higher and in the process managed to clear the 100 and 200 simple moving average on the 4-hours chart. It also pierced a resistance trend line, which paved the way for more gains in the short term.

However, there is one more bearish trend line, which stalled the upside in EURUSD. Currently, the pair is consolidating around the 50% Fib retracement level of the last drop from the 1.1465 high to 1.0817 low. Let us see how it trades, and whether it can break the bearish trend line or not to test the 61.8% Fib retracement level.

EURUSD

On the downside, an initial support lies around the 100 SMA (4H), which is sitting around the broken trend line to act as a hurdle. A break below it could take the EURUSD pair towards 200 SMA.

ECB Meeting

There are a couple of the key events lined up in the Euro Zone today, including the ECB interest rate decision and the Euro Zone Services PMI. ECB’ monthly economic meeting today might play a major role, as Euro’s fate somehow depends on Draghi’s speech.

Moreover, the Euro Zone PMI service, which is an indicator of the economic situation in the Euro Zone services sector will be released by the Markit Economics. The market is expecting no change from 53.3 in May 2015.

Australian GDP

Earlier during the Asian session, the Australian Gross Domestic Product, which measures the total value of all goods and services produced by Australia was released by the Australian Bureau of Statistics. The forecast was lined up for an increase of 0.7% in the first quarter of 2015. However, the outcome was above the expectation, as the Australian Gross Domestic Product grew by 0.9%.

AU GDP

In terms of the yearly change, the Australian Gross Domestic Product rose by 2.3%.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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