EUR/USDÂ managed to recover from two consecutive blows: the bigger one coming from the ECB and the second one from the elections in Greece.
However, all the bounces seem to meet the same resistance line, in what turns out to be a key battle. Update: the pair eventually pushed through and jumped higher. The peak so far is 1.1320.
The 1.1290 line is now being challenged for the third time, making it a triple top. Will it hold or will it break?
The bigger blow came from the one trillion+ QE program from the ECB. Draghi beat expectations (some created by his institution) and announced a €60 billion / month bond buying program that is intended to last up to September 2016 and could certainly be extended. EUR/USD gradually fell from above 116 to just above 1.11.
From there we had a nice recovery and a first touch of 1.1290 before the pair closed the week at 1.12.
The elections in Greece saw a victory for Alexis Tsipras and his SYRIZA party. While the outcome was predicted, the pair initially fell below 1.11 before staging yet another recovery to 1.1290. This was followed by yet another small slide and now we are seeing a third touch of the line.
Update: we are now seeing the pair try to push above the line. The high so far is 1.1299.
Here is how it looks on the chart:
