EURUSD Looking To Gain On Back Of Risk

EURUSD has shown some resilience so far in spite of the week kicking off with some softer than forecast Producer Price figures from the German economy. Whether growth has already peaked in the largest Euro Zone industrial nation remains to be seen, but this did not stop the pair from rallying further from last weeks lows of 14073.

Strong headwinds remain for the Euro this week with continuing Greek austerity measures set to dominate the news flow. The market still awaits the result of a vote of confidence in the Greek Prime Minister, which if it fails, could lead to further crisis for the beleaguered nation as emergency measures are put in place.

However a vote of confidence would likely buoy the market and with an expected resolution to Greek debt restructuring, the single currency could see a short term rally.

EURUSD Technical’s

With price action remaining above 14190 the pair remains bullish despite the risk overtones of the market. 14339 (Fridays high) offers the first hurdle of resistance, beyond which targets would be set towards the 14460-14500 zone.

One the downside first key support comes in at 14274 (100 Day SMA) and 14190. A break below 14190 would invalidate the current bullish view.