Technical Analysis of EUR/USD
Although the agreement on the Greek bailout came as no surprise, a sense of relief spread across the markets with the Euro finding additional bids. The EUR/USD has recently been caught between the 1.3205 and 1.3279 range. The markets initially reacted positively to the news, with the pair breaking above key resistance at 1.3279 but only temporarily as it later fall back within the range and it is currently trading at 1.3259. The pair has been trading upwards since 16th February and the bullish RSI calls for further upside. Considering that the US Dollar Index has entered a downward channel since 16th February, we could expect EUR/USD to rise further. Long positions with target at the 1.3308 area and stop loss at 1.3205 could be profitable, whereas in the alternative scenario a clear drop below 1.3205 could trigger the price towards 1.3147.
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