After the European Union agreed to support Greece in the crucial situation. The Greece Raises $6.7 Billion in Bond Sale. The bond, worth $ 6.7 billion, was priced to yield 6 percent .After this news, the EURUSD gone up from 1.3412 to 1.3510 on Monday. But one point to note that the one day‘s advance does not make a sense to decide that now the Euro is at a bullish mode. The ECB’s Lorenzo Bini Maghi commented on the current situation for bailout of Greece. He does not see any good impact in the economy because of giving a bailout package to the Greece. On Monday 29 March 2010, the Euro enjoyed a bounced back rally on short covering for the most of the day. Also, the US February Core PCE stayed unchanged at 0.0 percent, lower than the forecasted 0.1 percent. It was negative for the US Dollar as against the Euro.
On Tuesday, Euro zone economic data was increased more than expected in March. After published this news, the euro was falling sharply against the dollar.
Looking forward to Wednesday, the major important data is called ADP Non-Form Employment. The data dropped unexpectedly in March from the previous month.
According to the data processing firm ADP, this job data was decreased by 23000 from February to March on a seasonally adjusted basis, according to the ADP National Employment Report. Most of the Economist had expected an increase of 40,000 jobs, it failed their expectations. Following to the release of this data, U.S dollar sharply down against the euro, with EURUSD up 0.75 percent, trading at 1.3505.
Currently, the EURUSD having its support at 1.3381and if it breaks this support level with a heavy volume then the next support is at 1.3265.The EURUSD touched these two support level last year in April. On the other hand, the resistance for EURUSD is at 1.35431, which was crossed the same level last year.
Dipak Sharma
sdipak83@sify.com
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