EUR/USD further into overbought territory
The last 24 hours saw Greece meet its debt commitments and almost instantaneously the markets focused on the next deadline the country has to face on the 12 May. This looks like a template that will be set in stone for some time to come. Even without the confrontational presence of the Greek finance minister at the latest negotiations with the European Central Bank, European Union and International Monetary Fund, the lack of action in Greece is leaving all three far from convinced that the Syriza party has either the inclination or commitment to implement the changes needed to appease their austerity demands.
EUR/USD has moved even further into overbought territory and now sits at the $1.1360 region after yesterday’s squeeze. Part of this move can be attributed to the move in yields on euro-dominated sovereign debt. These levels mean that the currency pair is fast approaching levels last seen at the beginning of February where it may well come across some natural market resistance.