WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: Euro remains steady ahead of potential Greek extension

Posted by Edward Moya on Feb 10, 2015 8:36:00 PM


The euro remains steady as market participants anticipate that a deal will be reached for Greece to receive an extension.  With the EU Finance Minister meeting just hours away, the euro could finally break out of its tight consolidation range of 1.1269 and 1.1358.  If no new accord is made or extension is provided for Greece, we could quickly see the euro break below the 1.10 handle.    

The bearish trend has the euro roughly 6% lower over the past year and almost 15% for the last two years.  Since the ECB announced an expanded asset purchase program on January 22nd, the euro’s initial drop from 1.1615 to 1.1096 appears to have stabilized comfortably towards the 1.13 zone.  While the fundamental reasons for a weaker euro remain valid, we could see a short squeeze here support a move higher by a couple of figures.

Price action on EUR/USD daily chart shows where we may see a potential bearish ABCD pattern.  If the euro has a relief rally from the Greek outcome, the 1.16 region may provide strong resistance.  If the bearish pattern is valid, we could see a strong reversal occur around the 1.1550 region and see an ultimate test of the 1.10 handle.  Longer-term support will come from 1.0834 level, which is the 161.8% Fibonacci expansion level of the 2012 low to 2014 high move.       

The trade: Sell EURUSD at 1.1550 with a stop loss at 1.1650 and a take profit at 1.1250.  The Risk/Reward Ratio is 1: 3

Edward J. Moya               

Technical Strategist

WorldWideMarkets Online Trading

Topics: EURUSD, German Economic Data, NFP, euro. euro/dollar. U.D. dollar


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!