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Euro excels on greenback stumble

The greenback didn’t take too kindly to the disappointing GDP data and this played into the hands of currencies such as the euro.

EUR/USD
Source:Bloomberg

EUR/USD spiked to 1.1188 and came within striking distance of the 1.1200 handle. This move caught a lot of traders off guard and is likely to result in a near term squeeze as stops get triggered. The single currency has also benefited from an improvement in data and reduced risk on Greece. An unwind of the QE trade saw some big moves in German bunds and this also had an impact on the single currency. Taking a closer look at the price action, since
EUR/USD broke a downtrend that’s been in place since December 2014, the pair has been in fine form. There is likely to be some resistance in the 1.1200 region given it was a fairly significant congestion zone through February. I wouldn’t be surprised to see sellers come back into the market in this region with fairly wide stops.  On the calendar we have a couple of CPI readings for Europe and a GDP reading for Spain.

EUR/USD
Click to enlarge

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