The pair lost Wednesday’s gains, but managed to close above 100Dsma. The Greek government submitted the plan of reforms, which could be the last proposal from Greece. EU leaders set a deadline for Greece to reach an agreement by this Sunday. Otherwise, in Draghi’s words «Greek debt crisis more and more difficult to resolve.»
In the recent set of reforms, the GDP target is set at 1% for 2015 and at 2% in 2016. The vat percentage was cut to 23 and 13 percent for restaurant and hotel industry respectively. The Greece’s majority of trade portion depends on shipping industry. Tax increase is likely to take place in the shipping industry and television advertisement.
Technical view: The pair is trading above 20Wsma found at 1.1020. It managed to stay above the 20Wsma for 2 consecutive weeks. The weekly parallel support is found at 1.0887 and 1.0819, which are the previous swing lows. The 100Dsma is found at 1.1025 at the Asian session. The 4-session closing pattern indicates 1.0950 acting as strong support on a closing basis. These are several factors supporting bulls.
The 20& 50Dsma is seen at 1.1180 and 100Dema at 1.1220. The double top was formed at 1.1467. In the four-hour chart, lower high and lower lows were reached. These are few bearish factors this week.
The pair re-tested 1.0950 changing the texture in the H1 chart. These patterns imaged inverse h&s pattern, but a breakout has not taken place yet. A swing low was placed at 1.0992 rounded to 1.0990. The nearest support is found at 1.0970. Until bulls hold 1.0990, the pair is likely to re-test 1.1120, 1.1135, and 1.1170 during the day. It can extend towards 1.1280 later. In case bulls manage to close above 1.1150 today, they will make 1.1200 and 1.1280 next days. The selling pressure is observed below 1.0970 towards 1.0900 and 1.0850. Today’s trade favours buying. Safe buying is available above 1.1140.
The material has been provided by InstaForex Company – www.instaforex.com