European currency continues to strengthen against the USD despite negative news from Greece. The USD is under pressure caused by the outcome of the Fed FOMC meeting. Interest rates have been left at the previous level, as expected. Market participants were disappointed as Fed officials did not give any indications of timing of the increase in interest rates. Amid these facts Euro broke out important resistance level of 1.1000 and reached the level of 1.1230. However, today’s decision of the rating agency Moody's to downgrade rating Greek state bonds to the level of Ñàà2, has reduced trading activity of the buyers of European currency. At the moment, EUR is traded in the range of 11169-1.1189. According to the rating agency the balance between economic and financial risks in Greece is deteriorating, which can put pressure on Euro.
Support and resistance
The nearest resistance level: 1.1230 – 8/8 Murray level
Support level: 1.1169 – 7/8 Murray level
It is recommended to open short positions after breakdown of the level of 1.1150 with protective orders at 1.1180 and the target of 1.1024.