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8 May 2015
EUR/USD struggles to rise above 1.1270
FXStreet (Mumbai) - The EUR/USD pair is repeatedly being met with offers above 1.1270 levels, despite the weakness in the US Treasury yields post the mixed non-farm payrolls report.
Eurogroup meeting next on the cards
The gains could be capped due to a low probability of Greece reaching a deal with creditors at the Eurogroup meeting scheduled on Monday. The Greek government has rejected pension and labor reforms, while stating that the government would not back down on everything to reach a deal.
Meanwhile, the EUR/USD could remain well supported due to a fall in the September rate hike probability in the US. Fed fund futures now price about a 20% chance of a rate hike at the September 17 FOMC meeting, compared to about 26% yesterday.
EUR/USD Technical Levels
The immediate resistance is located at 1.1293, above which gains could be extended to 1.1440-1.1450. On the flip side, a break below 1.1230 (5-DMA), could drive the pair lower to 1.1185 (10-DMA).
Eurogroup meeting next on the cards
The gains could be capped due to a low probability of Greece reaching a deal with creditors at the Eurogroup meeting scheduled on Monday. The Greek government has rejected pension and labor reforms, while stating that the government would not back down on everything to reach a deal.
Meanwhile, the EUR/USD could remain well supported due to a fall in the September rate hike probability in the US. Fed fund futures now price about a 20% chance of a rate hike at the September 17 FOMC meeting, compared to about 26% yesterday.
EUR/USD Technical Levels
The immediate resistance is located at 1.1293, above which gains could be extended to 1.1440-1.1450. On the flip side, a break below 1.1230 (5-DMA), could drive the pair lower to 1.1185 (10-DMA).