Forex Trading News – Restructuring of Greek debt comments see EURUSD drop

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Forex Trading News - Restructuring of Greek debt comments see EURUSD dropThe Euro has traded with some volatility throughout the European session, ranging almost by 90 pips, from an early session low of 1.4134 to a high of 1.4223. A lower than expected ZEW survey index, both in Europe and Germany of 13.6 and 3.1, saw the EURUSD take a surprising rise of some 40+pips, which it promptly fell back on following comments from Eurogroup president Jean-Claude Juncker in which he said that a soft restructuring of Greek debt was needed. The comments saw the EUSUSD pair drop by some 40 pips to trade around 1.4160 momentarily, before returning back up to trade around the 1.4195’s. Support for the single currency is seen around the 1.4150’s which is the 38.2% Fibonacci retracement level of the January 10th to May 4th rise.


The Sterling gained over 90 pips throughout the European session, boosted by the higher than expected Consumer Price Index for April that came out at 4.5% from an expected value of 4.1%. Upon the release of the data the GBPUSD pair gapped over 30 pips from 1.6250 to 1.6283. The higher than expected inflationary indicator helped the British pound rise as it implied a higher likelihood of a UK interest rates hike by year end. The latter part of the European session saw the Sterling pare back on the gains experienced further to the release of the data and go on to drop some 50 pips and head back towards the recently reached 7 week low of 1.6145 – a current strong support level for the Sterling. Resistance for the GBPUSD is seen around the 1.6280’s – the current 55-day moving average.


The EURGBP experienced a volatile session, dipping by over 65 pips in the early part of the European session, before finding support around the 0.8680’s – levels that denote yesterday’s low and then rising back up to trade around the 0.8730’s, close to the session’s open. Strong support for the pair is seen around 0.8670 – a level that denotes the recent one and a half month low of the pair.


The Swiss Franc continued on with the momentum from the previous session against the Dollar and dropped a further 30 pips in the wake of the European session as the USDCHF rose to a high of 0.8881 from an open of 0.8849. The recent move of the USDCHF see’s it form a double bottom around the 0.8800 level and may see the pair form a head and shoulders formation, as viewed on the hourly chart with this level as the neckline.



(06:00 GMT)

1.4179 0.8749 1.6203 0.8849 1.2548
DAY’S HIGH 1.4223 0.8752 1.6302 0.8881 1.2593
DAY’S LOW 1.4128 0.8611 1.6173 0.8837 1.2515

(13:00 GMT)

1.4141 0.8725 1.6206 0.8865 1.2537