Monday, September 21, 2015

EUR/USD retakes 1.1300, unperturbed by Syriza victory

FXStreet (Mumbai) - The EUR/USD pair keeps its overnight recovery mode intact from 1.1270 area at Tokyo open, as the Asian traders digest the Greece elections news amid lack of fresh fundamental triggers as the Japanese markets remain closed today.

EUR/USD rises to fresh session highs

The EUR/USD pair trades almost unchanged at fresh session highs of 1.1304, recovering from 1.1284 lows struck at the opening of the week. The main currency pair opened the week on a bearish note as widely expected, as markets paid little attention to the Syriza’s victory at the Greece snap elections.

Greek Prime Minister Alexis Tsipras victory remains a net positive for the Euro group and Greece’s international creditors as Tsipras’ Government had clinched the bailout funding deal against meeting harsh austerity measures last July, thus avoiding a probable ‘Grexit’.

Last week, EUR/USD gained more than 200 pips and managed to close the week just ahead of 1.13 handle, spiking to weekly highs as much as 1.1460 levels, following the dovish Fed decision and lower US economic projections.

A lighter start to the data-busy week ahead, with the EUR traders now awaiting flash manufacturing and services PMIs from Germany as well as Germany's Ifo survey results due to be reported in the latter part of the week. While ECB President Draghi’s testimony to the lawmakers in the European parliament on Wednesday, will be closely eyed.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1328 (Sept 15 High), above which gains could be extended to 1.1375 (Sept 14 High) levels. On the flip side, support is seen at 1.1284 (Today’s Low) below which it could extend losses to 1.1212 (Sept 16 Low) levels.
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