Euro above 1.0800 amidst ‘Grimbo’ and ‘Grexit’

FXStreet (Edinburgh) - The shared currency is about to close the second consecutive week with gains vs. its American counterpart. This time the lack of progress in the Eurogroup meeting prevented EUR-bulls to advance beyond the key barrier at 1.0900, although further attempts seem to be in the pipeline in the upcoming sessions.

EUR/USD between Greece, PMIs and FOMC

The renewed optimism regarding a potential EU-Greece deal pre-Eurogroup meeting gave extra legs to the pair, prompting investors to quickly shrug off poor results from the preliminary manufacturing and services PMIs as well as mixed IFO numbers.

The subsequent failure to clinch a deal plus the ‘less friendly’ tone that prevailed in Riga between Greek officials and its EU peers forced spot to shed gains and retreat to the 1.0800 neighbourhood, although the down move was not only ephemeral but it also gave bulls the chance to buy the dip.

From a technical angle, EUR/USD has overcome the key resistance given by the 5-month downtrend and last week’s peaks around 1.0850, opening the door for another test of the 1.0900 handle and the critical resistance band at 1.1040/60.