Federal Reserve chief Janet Yellen met with US legislative body as part of periodical testimony in Capitol Hill on Tuesday and Wednesday. She once again reiterated that the Fed may hike rates later this year if the economy continue on the road to improvement.
reece has gave in to Eurogroup ultimatum to advance bailout extension proposal, but Germany unequvocally rejected it. It increases uncertainties in the market.
Latest development on the Greek drama has entered a new stage where the battle continues to draw on and agreements seems further out of reach. Euro is ranging since yesterday after Eurogroup talks ended in a standoff.
Euro has been traded at almost flat in the last few days after US economic data disappoints and new insights into Greek debt resulutions surfaced. The new Greek Finance Minister Yanis Varoufakis is in official trip to Europe which aimed at renegotiating the terms of Greek debt payments and garner supports from leading creditors.
Looking into the last incidents, it is certainly necessary for us to prepare as best we could ahead of the third bank announcement that might rock up the market next: European Central Bank (ECB).
EUR/USD remains under pressure, but the momentum has turned down. As trading strategy, watch the support area at 1.15496 and resistance at 1.16518. If the support breaks, euro may weaken to 1.14582. Instead, if the resistance breaks, euro may strengthen up to 1.17540.
Yesterday (15/1), Swiss National Bank (SNB) sent thrilling shock toward the market by unexpectedly scrapped a key policy that has defended Swiss Franc at a maksimum of 1.2 Euro. It sent massive shocks in the market.
Ahead of the ECB meeting this month, a number of analysts predict the Euro defeat against other currencies. They expect the EUR/USD to touch 1.15 in some instances.
