Euro helped by Greece
After putting up a good fight the left-wing Syriza party stated it will draft a list of reforms within a few days in the hope that it would improve relations with the rest of the eurozone, and more importantly see off bankruptcy. EUR/USD was given a slight lift on the back of this, but unfortunately for the bulls the rally will be short-lived as good news doesn’t resonate with the market as much as bad news does.
In the post-Federal Reserve statement session some of the wind was taken out of the sails of the dollar, which means EUR/USD will not be targeting parity in the near future; however, the US central bank is still tipped to raise rates this year so the downward trend remains in place.
The $1.07 level is acting as resistance, and if this mark is held it will bring the support at the 200-hour moving average of $1.0635 into play; a move through that metric will put $1.06 is sight. Major support has been found at $1.05, the medium-term target. A move above $1.07 will put $1.08 on the radar, and beyond that traders will look to $1.09.