Early rumor in NY shows the markets skittishness
There was a tweet which said a news source had said there was an imminent Greece deal to be announced. Well the EURUSD moved up about 30 pips on the news. The tweet was deleted, apparently when the tweeter looked at the referenced news source and did not SEE such a headline (he apparently heard the news) and the EURUSD moved back lower - a bit. A spoof to get the EURUSD higher? Who knows, but it showed the markets skittishness. PS. there is no imminent deal according to real sources, but the action showed what traders are up against with Greece a hot topic still.
Technically, the move higher did take the price of the EURUSD back above the 100 hour MA which is currently at the 1.0922 level. The low - even after the denial was 1.0923. So the tweet was successful, it taking the price above what was resistance.
The price of the EURUSD has been weaker in trading today with US personal income and spending for April expected to show a +0.3% and +0.2% gain (vs 0.0% and +0.4% last month). PCE data is also due with +0.1% for headline and 0.2% for core expected. The pairs high was reached in the 1st 10 minutes of trading in the new week and declined through the London session (before the spoof push higher). The pair has resistance above at the 1.0949-56 area (see hourly chart). If there is a trade (if you feel like it in this trading environment), testing and staying below this area, should lead to more downside potential. The price will need to get back below that 100 hour MA now at the 1.0922 level. A move above that resistance area will look toward the 200 hour MA (green line).The price got close to the line on Friday but stopped short. The level is currently at 1.0989. The high for the day is 1.09876.
Unfortunately for the shorts, the move back above the 100 hour MA took some wind out of the selling sails. For the market as a whole, it also reminded us that the market will have to deal with the Greece and all the headlines and rumors that go with it. So be patient.
