EUR/USD has moved up to a higher trading range: 1.1375 to 1.1430. The pair is experiencing a nice pattern which involves some range trading, a clear break higher and then further range trading which does not interfere with the previous range.
The background is the disappointing retail sales report in the US. Consumers did not push up spending in April and this one cannot be blamed on the weather. In addition, the Greek troubles continue, but this doesn’t seem to bother the euro too much.
Greek finance minister Yanis Varoufakis suggested two ways of ECB assistance: a delay in repayments and a participation of the Frankfurt based institute in buying Greek bonds, as part of the QE program. These ideas will probably fall on deaf ears.
The clock is ticking and Greece is running out of cash but it is either that traders do not fear the consequences of a Grexit, or believe that some kind of solution will be found in the last moment, as it always happens.
EUR/USD
Further resistance beyond the 1.1430 high is the round level of 1.15, eyed by many. Beyond this line, we find 1.1640. On the downside, we find 1.1275 and 1.12.
More: EURUSD – Triangle Break Near?
Here is how it looks on the chart:
