Over the previous week, the dollar was weak against its major counterparts. And, the euro got a reprieve and it strengthened on the back of increasing investor confidence on the euro zone crisis. Currently, after closing the weekend gap, the EUR/USD has retested its rising trend line during the early hours of the European session.
Following the recent Greek elections, investors have continued to bank on the positive sentiment from the country. The Greece’s New Democratic Party emerged victorious in the elections and this has made investors to be more confident concerning the debt problems affecting the country. In the coming days, traders will still be keenly watching the events taking place on the country, especially on the economic policies that the new coalition government is going to come up with, in order to translate them into trading opportunities.
Technical analysis on the EUR/USD reveals that it has just retested its rising trend line. Immediate resistance is found at 1.2746. A confirmed break above this could expose 1.2980. On the other hand, immediate support is found at 1.2600. A confirmed break below this could expose 1.2555.
EUR/USD is in an uptrend. Therefore, medium term traders who were long in the pair should hold on to their positions. Short term traders would rather wait for all this drama and the earnings season to complete and then have a fresh call on the pair.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.