Facing relevant problems on both sides of the Atlantic Ocean, traders favoured euro currency during last weeks, selling the dollar even against all of its major counterparts.
US economy faced strong headwinds during the first quarter and even April data did not help to improve the sentiment, albeit so-much focused non-farm payrolls came out better than expected. Rate-hike bets seems to be postponed by some even to December, while noone really believes in June’s first liftoff as during the Q4 2014.
As for the eurozone’s economy, Greece remains the top 1 issue with the entire euro area facing serious problems due to inflation and slow recovery from stagnation (supported by high unemployment in mostly peripherial areas).
Due to above-mentioned issues, mostly due to change in sentiment towards US dollar, we could see eur/usd short squeeze providing us hints that the currency pair could reach even the $1.15 threshold.
From the technical point of view, we expect stops to be positioned above the $1.15 level, while we have already reached the previous resistance at $1.1376. As for support, we can see next stronger one at $1.1216, or later at $1.1137.
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