FXStreet (Mumbai) – The EUR/USD pair is back above 1.11 handle in a highly volatile trading session as traders weigh the contagion threat of an increasing possible Grexit scenario.
Hollande and SNB drive EUR higher
The latest move from 1.1060 to 1.1112 was largely driven by the SNB intervention in the FX markets and comments from French President Hollande. The EUR/CHF pair shot to a high of 1.0439 as the Swiss National Bank intervened in the FX markets to restrict the CHF strength. The uptick in the EUR/CHF cross helped the EUR/USD pair recover from 1.1060.
Further support came from Hollande, who said Greece deal is still possible and the French economy is better prepared against the contagion that it was four years ago. It remains to be seen if the pair manages to sustain above 1.11 levels as there are no signs of Greek deal of the country making loan repayment to the IMF tomorrow.
EUR/USD Technical Levels
The pair currently trades at the daily high of 1.1112. The immediate resistance is located at 1.1149 (50-DMA), above which the pair could target the psychological level of 1.12. On the flip side, a break below 1.11 could push the pair down to 1.1050 (100-DMA).
The EUR/USD pair is back above 1.11 handle in a highly volatile trading session as traders weigh the contagion threat of an increasing possible Grexit scenario.
(Market News Provided by FXstreet)