Euro Broadly Lower On Greece Bailout .

The Euro had a worst week due to another bad development in the Greek crisis. Because Euro was sold off sharply last week on the drama of Greece bailout. Indeed, last week of two sessions sent EURUSD more than 200 pips down. As per the markets experts thought that there is already an agreement reached between Euro zone countries on the way to provide financial support to Greece, Germany came out and said that it’s not a legal to support such kind of plan and called for IMF’s involvement.

The last week data’s are negatively affects on the EURUSD pairs. FED holds rates for “Extended Period”(>0.25).The news came from US producer prices fall as energy costs drop, a key indicator of inflation, Which was positive for USD.Also the another news was from Bank of Japan ( BOJ),held rates at a record low (0.1%) and said that it would double a loan facility available to other banks. The main data was published last week was the Euro zone reported one of its largest monthly current account deficits. The 16.7 billion euro shortfall in January compares with a 9.8billion surplus in December. After this data the euro down by 218 pips by the two sessions that is last Thursday and Friday.

The euro fell against the U.S dollar and yen Monday in Asian market on Japan financial markets on holiday. This week we have main focus on the following data’s for technical analysis :-

Today it will bring only two notable economic reports, beginning with the SNB Quarterly Bulletin (Swiss National Bank) at 4.30 pm.The second data is employment change .It still has some impact on the Euro. On Tuesday, Belgium NBB (National Bank of Belgium) Business Climate published at 8.30 pm. Last month the index remained unchanged at -7 points. This is expected at around -4.1.A negative number means worsening economic conditions. German Ifo (Institutes for Economic Research) Business Climate published on Wednesday at 3.30Pm.Contraary to other European surveys and indicators, this one stable and continues to improve steadily. Previously it was 95.2, now it is expected to increase upto 95.8 points. It will have positive impact on Euro. It is a major market mover. The second data is publishing on Wednesday is Industrial New Orders at 4.30pm. Last month it was at 0.8% forecasted is 2.1% this time, supporting the Euro.

In addition, markets will focus on speeches from number of central bankers. A number of Fed officials will speak too including Bernake, Kohn, Pianalto, Warsh, Bullard and Tarullo.

As per technical point of view, we can see first strong resistance level at 1.3783 and then the second resistance at 1.3855.In downside we can see the first support at 1.3690and second support level at 1.3530.Now the EURUSD breaks the second support level (currently it is trading at 1.3520) so market may touch the third support level at 1.3433.