Technical Bias: Bullish
- EURUSD approaches 1.13 handle, trading at 2-month highs.
- US dollar remains weak across the board.
- Greece, Eurozone aiming to iron out preliminary agreement over bailout aid by Sunday.
The EURUSD rose for a fifth consecutive day on Friday, setting a fresh two-month high as the dollar slipped further into the red against a basket of its major competitors.
The EURUSD edged closer to the 1.13 threshold, reaching a daily high of 1.1286. That was the pair’s highest since February 26. The EURUSD consolidated at 1.1265 just prior to the North American markets. That represents a gain of 0.5 percent. Initial resistance is located at the daily high of 1.1286. On the downside, support is found at the 1.12 level.
The MACD and the RSI clearly show a bullish upside, as the euro continues to enjoy gains on the back of a weakening US dollar. Declining support for the dollar has been the main catalyst behind the euro’s latest surge. The US dollar index continued to drift below 95.00 as of Friday morning.
Greece Bailout Talks
Greece and its Eurozone partners are ramping up talks over the weekend in a bid to break the months-long deadlock over a bailout agreement. The Greek government announced earlier this week that bailout talks would no longer be headed by finance minister Yanis Varoufakis, a sign Athens was eager to reach an agreement with its international creditors.
Greece and the Eurozone are aiming to iron out a preliminary deal by Sunday, leaving enough time for final ratification at the next ministerial meetings on May 11.