EUR/USD 1.3080

The Euro's decline against the Dollar from 1.3175 seems to have found support at the 1.3080 after falling around 100 pips in the American session on the back of rumours about Greece leaving the area and next election in the Hellenic country and France.

After supporting at 1.3080, the EUR/USD has been trading in a slight recovery to teach levels close to the 1.3100 zone. Currently the pair is trading at 1.3090, 0.45% below today's opening price action. Pair remains "Strongly Bearish" and "Overbought" according to FXstreet.com Technical Studies.

The single currency is being hammered just after the European close on rumours about certain Spanish banks insisting on another round of LTRO (LTRO3) and unconfirmed sources talking about the likeliness of Greece exiting the bloc.

source: fxstreet.com

The market was pricing expectations of a possible lower interest rate today, but the ECB has kept it at 1%, adding that the central bank’s officials didn’t discuss the rate at all today: “Those comments fell short of expectations for more dovish ECB language or indication that the central bank was moving closer to further easing”, wrote Nick Bennenbroek, head of currency strategy at Wells Fargo Bank, pointing to the rebound of the euro, also helping the CHF and NOK.

“ECB President Draghi said the inflation risks were broadly balanced and that risks to the economic outlook were to the downside, while he also said the central bank did not discuss a rate cut at today’s meeting”, Bennenbroek added.

In the US, initial and continuing jobless claims surprised the market with a 27k and 53k drop, respectively, now at a total of 365k and 3.276M. Falling productivity by -0.5% in Q1 (YoY) and rising labor costs by 2% were also revealed today.

source: fxstreet.com

EUR/USD 1,3246

Equity markets retraced losses and are edging higher on a new risk tone after digesting the Spanish rating downgrade to BBB+ by the S&P agency and the higher unemployment rate at 24.4%. The EUR/USD also bounced from its lows at 1.3157 in mid-European session and rallied up above the opening price of 1.3223 to print its high at 1.3243.

Since then, the pair has been stabilizing around the opening price, with some upside pressure as the NY session is ahead with the US GDP data due at 12:30 GMT.

“1.3250 area is providing near-term resistance for EUR/USD. We feel the euro should be sold into rallies ahead of next week’s key economic data and political events, including PMIs, ECB meeting, and the ongoing political cycle”, wrote BBH analysts headed by Marc Chandler.

source: fxstreet.com

EUR/USD 1.3191

Risk sentiment continues to improve and the EUR/USD is getting closer of retracing yesterday’s losses. The American session rally pulled the pair from the opening price at 1.3155 to print a new high at 1.3218.

At the moment of writing, the EUR/USD is holding at the psychological level at 1.3200.

“A decisive close below 1.3000 is required to unlock the important multi-month reversal pattern into 1.2625 (16 Jan swing low). Meanwhile, only a sustained daily close back above 1.3228 (20th April high), puts this scenario on hold for a potential recovery into our upside target zone at 1.3460-1.3497 (200-day average)”, wrote MIG Bank analyst Howard Friend.

source: fxstreet.com

EUR/USD 1.3320

In quiet pre-Easter trade, EUR/USD remains trapped inside past days' range with focus on the release of the US FOMC minutes to the March meeting later on the session.

EUR/USD peaked at 1.3366 during the European session but couldn't sustain gains and turned lower to hit a fresh day's low of 1.3300 into the North American return. At time of writing, EUR/USD is quoting at the 1.3310 zone, where it is little changed since opening.

As for technical levels, the Mataf.net analyst team sees immediate supports at 1.3290, 1.3250 and 1.3190, while they place resistances at 1.3370, 1.3385 and then at 1.3485.

source: fxstreet.com