S&P provides Euro with a stimulus; EUR/USD up to 1.2960

FXStreet (San Francisco) - The EUR/USD jumped 40 pips in the last minutes from 1.2925 to test 1-week highs at 1.2960 amid the S&P's decision to upgrade Greece rating to B from B- and to maintain its outlook as stable.

According to S&P, the Greek “government made substantial fiscal adjustments' despite a 'complicated political and policy environment in a rating weakness.” The agency believes that the economic will emerge from contraction next year in a gradual but weak recovery.

Currently, EUR/USD is trading at 1.2953, up 0.23% on the day, having posted a daily high at 1.2964 and low at 1.2909. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

EUR/USD sentiment

According to Jamie Coleman, the unit will have free way to the 10-day moving average at 1.2993 if EUR/USD runs the stops. "So often we trigger stops but fail to follow-through. If we can close above the 10-day average today, we would have a strong sign that at least a short-term bottom is in place."

Above 1.2960, the EUR/USD will face next resistance at 1.2980 and the mentioned 1.2993. On the downside, supports are at 1.2915, 1.2900 and 1.2880.