EUR/USD began the new trading week with a bounce from low support, but the upwards move did not have enough momentum to push the pair to the next resistance line.
Positive data continues trickling out of Europe, but the worries about a Grexit / Alexit keep markets worried.
EUR/USD movements
EUR/USD was hit hard on Friday by the excellent jobs report. The 257K gain in jobs, huge positive revisions and the comeback in wages strengthened the greenback across the board.
After closing just above 1.14, EUR/USD slipped to the 1.1290 support line in the wake of the new week but rose nicely from there. However, it was unable to reach the 1.1373 resistance line (the November 2003 low) and it peaked at 1.1358.
At the time of writing, euro/dollar is sliding in range once again, trading around 1.1310. Below 1.1290, we have 1.12 and above 1.1373 we have 1.1460 as the next lines.
Greek worries
Germany reported a trade surprlus of 21.8 billion, well above 18.2 billion expected. Also the Sentix Investor Confidence enjoyed a move higher and jumped to 12.4 points, certainly encouraging. Are investors happy with ECB QE?
A lower euro could be encouraging investors and this lower euro is also a result of worries about Greece. In a key speech in parliament, the new PM Alexis Tsipras laid out his economic plans, reiterating campaign promises and showing a defiant attitude towards Greece’s creditors.
So far, both Germany and Greece have been digging in their heels and playing a high stakes game. A key date is February 11th. An extraordinary Eurogroup meeting is held on Wednesday and is set to find a resolution or at least a temporary one. The current deadline is February 16th, next Monday.
Both sides have a lot to lose from a Greek exit of the euro-zone. Will they go too far?
More: EUR/USD En-Route To Parity As European Equity Markets Set For QE-Boost – Citi
Here is how it looks on the chart:
