EUR/USD climbs above 1.2600
Published: 24 May at 6 PM
After spiralling its lowest point since July 2010, the EUR/USD has been recovering with the pair moving forward to trade at above 1.2600 resistance and hit an intra-day high of 1.2620. The pair is currently trading at 1.2595 and managing to keep levels above 1.2600.
Discussions about coordinated action by new Central Banks on liquidity provisions have altered the market. The discussions speak about activating USD Forex swap lines between FED and the Bank of England, Bank of Canada, European Central Bank, Stillwater National Bank and the Bank of Japan. Those lines are in place already and not due to expire until 1 February next year.
With losses so far of 0.05 per cent today from the opening price action, the EUR/USD is “extremely oversold” and “slightly bullish” stated the FXstreet.com Technical Studies. If the pair broke yesterday’s hourly high of 1.2600, it would see the 23 May high of 1.2690 being the next resistance, then 1.2728 and 1.2820.
On the downside, support is at 1.2515, then 1.2493 before 1.2483, 1.2398 and 1.2215.