Key Economic Data - Coming Up Today(All Times GMT+2)
The EURUSD price trajectory has ground to a halt over Tuesday and Wednesday morning. Following on from Monday's restricted 89 pip range between 1.1270 and 1.1359 the range narrowed further on Tuesday to 1.1273 - 1.1345. The 72 pip daily range accounts for a fluctuation from high to low of 0.6% which is approximately half the average daily range over the last five months as well as being considerably smaller than the last 15 days. (see EURUSD Daily Chart). The potential for a large price move and the onset of a new trend either lower or higher is possible to emerge from the Eurogroup. This has led to many investors, traders and speculators keeping their powder dry and waiting to see the development of the fundamentals before taking action in the fx markets. The present situation is the first time since the creation of the Euro in 1999 that any member state is facing the real risk of exiting the common currency union and market participants are unsure of how this would affect markets and what the ramifications will be. We often see that when the price range narrows we subsequently witness a price explosion to one side. We have seen this happen in the EURUSD several times in the last 9 months and the most extreme example is with the EURCHF that traded in a 10-20pip daily range for several years before moving 4000 pips in an explosive 10 minute move.
The EURUSD is currently at 1.1318 and is 200 pips above the 12-year low of 1.1097. The price has declined from last week's high at 1.1534 and is roughly at the mid-point between the 2 week high and low. The most active pairs in yesterday’s session were the USDJPY and the USDCAD. The USD gained against the YEN as the USDJPY rose from 118.40 to 119.80 rising over 1% and the USDCAD rallied from 1.2453 to 1.2624 as the US Dollar gained and Crude Oil fell almost $3.00 in a day. The main highlights ahead today include US Crude Oil Inventories data at 15:30GMT as well as the US 10-y Bond Auction at 18:01GMT. In addition throughout the day it is to be expected that announcements may be made by the parties involved in the upcoming emergency Eurogroup and look out for the official statements by the European and Greek sides at the conclusion of the meeting. Above average volatility is to be expected today!
EURUSD Support areas include 1.1325, 1.1250, 1.1200, 1.1150 1.1100, 1.1050, 1.10, 1.0950. Resistance levels above are at 1.14, 1.15, 1.16, 1.1650, 1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 10 Minute Chart
EURUSD 2 Hour Chart
EURUSD Daily Chart
EURUSD Pivot Point Table