Euro sees back-to-back gains
EUR/USD is up 0.25% on the day, currently trading at $1.1280, having touched a low of $1.1224 in overnight trading as markets continue to price in the fall out of the recent Greek election. The Syriza victory could have wider implications for the single currency union should the newly elected party break the terms of its IMF loans.
Helping to prop up EUR/USD was Germany’s Ifo business climate index data, which came in at 106.7, up from its previous level of 105.5.
EUR/USD is being supported higher by its 50-hour moving average, currently trading at $1.1229 – a level likely to continue to act as an area of strong support. Topside resistance of $1.1291 is being tested at present, and if this fails to hold we could see a move higher with targets at the 100-hour MA at $1.1374.