The euro rebounds from the support zone managed to gain more than 1% at yesterday’s session. Greece is approaching a new bailout, which is likely to be in few weeks. The Greek banks are open for the first time in three weeks.
Standard & Poor raised its sovereign rating for Greece from CCC- to CCC +, to stable from negative.
The pair closed below 20Wsma. It formed a large distribution channel between 1.1467 and 1.1437. In the daily chart, the pair lost all moving averages. The nearest support is found at 1.0785. The 20Wsma is seen at 1.1020, as a high of 1.0970 has been reached. In different time intervals, hourly and daily charts, the oscillators indicate oversold levels.
The pair has been moving towards lower lows and lower highs falling below the lower edge of the ascending trendline. We recommend fresh selling only below 1.0780 initially with a target at 1.0720 later, in order to extend towards 1.0630, but not yet triggered.
The pair hit a higher high in the H1 chart for the first time in 10 days. Intraday resistance is seen at 1.0970, 1.1000, and 1.1020. Support is found at 1.0930, 1.0930, and 1.0860. Monthly support is found at 1.0730. The trend shifts to buying with sl 1.0850 if a dip is available. In case the pair loses 1.0860 again, sell towards 1.0820 and 1.0800.
Today’s trade remains under the influence of the US housing data.
The material has been provided by InstaForex Company – www.instaforex.com