The ECB raised the amount of emergency liquidity available to Greece lenders again, slightly above the previous level. The ELA is going to help banks. Today, the euro is trading lower against JPY, USD, GBP, and CAD at the Asian session. Against AUD, the European single currency is trading higher.
Looking at the cross pair on the chart, let’s analyze how the euro is behaving against the JPY. The cross made a double top at 131.67. It is parallel resistance, which the pair was unable to breach yesterday. The intraday trend is turning to bearish. Resistance seems at 131.20. An hourly candle closes below 130.50. So, we can conclude the near-term trend is capped. At the yesterday’s session, the pair made a low at 130.58. Intraweek support is found at 130.20. Positional selling will be triggered below 129.20. The cross has been expanding its rising hourly wedge. A daily close above 131.70 can trigger a new upswing towards 131.85 and 133.20.
Selling only below 130.80, strong selling will emerge below 130.50.
The German economy continues to expand. The Ifo business climate index for German trade and industry rose to 107.9 points in March from 106.8 points last month. The Germany economy stood higher among other countries of the eurozone, providing the optimistic outlook. We recommended buying above 0.7305 on Monday. The pair made a high at 0.7384. Intraday support is seen at 0.7340. The pair has been facing strong resistance at 50Dsma and 200msma or 0.7375. If the price closes above 0.7375, bulls can challenge 0.7400, 0.7430, 0.7450, and 0.7550. At the yesterday’s session, the pair breach 50Dsma on intraday. Today, the pair has found support at 50Dsma at the Asian session. Intraweek support is seen at 0.7300 and 0.7290. The cross gave an upside breakout from an inverse pattern aiming for 250/280 pips.
The key level to watch on the resistance side: 0.7375 on a daily closing basis.
The material has been provided by InstaForex Company – www.instaforex.com