EUR/USD- After relatively steady start of the trading day, the euro fell sharply against the dollar, briefly plummeting below the 1.30 mark ahead of Eurogroup finance minister meeting later in the day. The single currency managed to gain some ground and it was trading at $1.3070 at the time of writing.
Market makers are cautious as the Eurogroup meeting will be held to discuss the highly turbulent situation surrounding Ireland, Portugal and Cyprus. It became evident that the Cypriot government will need a bigger bail-out than previously stated, rising to EUR23 billion from EUR17.5 billion. Another urgent issue to be addressed is whether to grant Ireland and Portugal an extension on their loan repayments.
Technical analysis EUR/USD
At yesterday’s session the euro climbed from 1.3040 to 1.3130. This morning the currency pair was trading in a broader range at 1.3060-1.3120.
Should the euro overcome the resistance zone at 1.3115-1.3135, the aim of the euro will be reaching and testing the zone 1.3160-1.3180. If successful, the upward trend will continue to 1.3205-1.3225. If it falls below the support zone at 1.3105-1.3085, the next support is expected to be found at 1.3060-1.3045. In case of a breakdown, the downward trend will continue to 1.3030-1.3010.
USD/JPY – The U.S. dollar formed a new peak against the yen during yesterday’s trading session, reaching the highest level of 99.90 in four years. That marked another day at which the USD/JPY remained near the psychological 100.00 area, unable to break above this limit. Since the BOJ announced its more aggressive monetary easing plan last week, the dollar gained about 7% against the yen.
Market makers are now looking for indications of whether the BOJ decision will trigger a transfer of capital from the country to other assets overseas, putting even more pressure on the Japanese currency. However, there are still no signals indicating such process.
Technical analysis USD/JPY
At yesterday’s session the dollar was in the 99.15-99.90 range. This morning the currency pair was trading at 99.35-99.65.
If the dollar successfully overcomes the resistance zone at 99.65-99.85, the aim will be reaching and testing the zone 100.05-100.25. If successful, the upward trend will continue to 100.45-100.65. If it falls below the support zone at 99.35-99.15, the next support zone is expected to be at 99.00-98.70. In case of a breakdown, the downward trend will continue to 98.45-98.20.
Source: dfmarkets.co.uk
Disclaimer: The Content of these charts and analyses does not constitute any form of advice or recommendation by Delta Financial Markets to buy, sell (or refraining from making) any trade or investment. You may wish to seek independent advice before entering into transactions.
Delta Financial Markets shall not be held liable by you or any others for any decision made or action taken by you or others based upon reliance on or use of information or materials obtained or accessed through use of these technical analyses and charts. DF Markets assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page. DF Markets shall not be liable for any special, indirect, incidental, or consequential damages.