EUR/USD spikes above 1.1100, retraces to 1.1080

FXStreet (Mumbai) – FXStreet (Mumbai) – The shared currency recovered more than half its versus the American dollar in the European morning, with EUR/USD rebounding back above 1.11 handle only to cool-off to 1.1080 levels. The European currency climbed higher, although remained in red, after reports hit wires that Greek talks could restart shortly today, providing renewed hopes to the markets.

EUR/USD bounces-off from 1.1000

The EUR/USD pair trades -0.80% lower at 1.1076, easing off session highs reached at 1.1112 in last hours. The major halted its downward spiral and rebounded sharply in a knee-jerk reaction to French FinMin Sapin’s comments, citing that Greek talks would once again begin soon.

The latest comments brought renewed optimism in the markets as traders bet on a Greek solution to be reached and the Euro group could help Greece avert a default tomorrow.

EUR/USD was relentlessly offered in Asia, dropping nearly 150 pips weighed by impending Greek debt situation after Greek Prime Minister Alexis Tsipras decided to hold a referendum on accepting austerity measures set out by the nations creditors.

While, Greek officials confirmed capital controls
imposed as the government tries to contain a bank run following heavy withdrawals last week.

Looking ahead, Greece headlines remains in the spotlight, while the macro calendar remains fairly light with German CPI – the only significant data to be reported.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1112 (Today’s High) levels, above which gains could be extended to 1.1156 (May 20 High) levels. On the flip side, support is seen at 1.0955 (Today’s Low) below which it could extend losses to 1.0913 (June 2 Low) levels.

The shared currency recovered more than half its versus the American dollar in the European morning, with EUR/USD rebounding back above 1.11 handle only to cool-off to 1.1080 levels. The European currency climbed higher, although remained in red, after reports hit wires that Greek talks could restart shortly today, providing renewed hopes to the markets.

(Market News Provided by FXstreet)