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2 Jul 2015
EUR/USD traders get set for Greek referendum and showdown
FXStreet (Guatemala) - EUR/USD is currently trading at 1.1081 with a high of 1.1121 and a low of 1.1032.
EUR/USD has been in a minor recovery again today of yesterday's 1.1032 lows but was capped at the 1.11 handle's psychological resistance. This is guarding the bearish gap that came as a result of last weekend's events around Greece of which a subsequent referendum is to take place this Sunday. Events today, in the current session and before the US long weekend saw supply in the greenback across the board.
EUR/USD price action
EUR/USD gapped from 1.1160 down to 1.0954 at the start of the week and recovered strongly, exceeding the opening level of the bearish gap until 1.1210 where the major has been heavy and in supply since and until 1.1032 in today's recovery. We topped out at 1.1121 on lows of 1.1049 in the volatility of the Nonfarms Payroll release and have been confined to 1.1070/12 since.
EUR/USD on the Greece referendum
The latest developments regarding Greece continue to dominate the newswires but there is little evidence yet of any material negative contagion to global financial markets as analysts at Bank of Tokyo-Mitsubishi UFJ, Ltd explained.
"The Greek referendum on Sunday will be important in determining whether the risk of Grexit continues to increase and potentially becomes more likely. The outcome from the referendum remains highly uncertain." The euro may stage a limited relief rally although a return to relative fundamental drivers would likely see the euro soon come back under downward pressure."
In a breakdown of the implications for EUR/USD, the analysts wrote "If the “Yes” vote prevails, the current Greek government would likely be replaced by a national unity government tasked with securing an agreement with the creditors. The euro may stage a limited relief rally although a return to relative fundamental drivers would likely see the euro soon come back under downward pressure."
EUR/USD technically bearish
While EUR/USD is staging a minor recovery, the theme for the major remains in the hands of the bears. Karen Jones, Head of FICC Technical Analysis at Commerzbank explained their stance is neutral to negative noting how the the pair had started to erode the cloud, the base of which lies at 1.0994.
Analysts at KBC explained that below 1.0819 will expose further downside.
EUR/USD has been in a minor recovery again today of yesterday's 1.1032 lows but was capped at the 1.11 handle's psychological resistance. This is guarding the bearish gap that came as a result of last weekend's events around Greece of which a subsequent referendum is to take place this Sunday. Events today, in the current session and before the US long weekend saw supply in the greenback across the board.
EUR/USD price action
EUR/USD gapped from 1.1160 down to 1.0954 at the start of the week and recovered strongly, exceeding the opening level of the bearish gap until 1.1210 where the major has been heavy and in supply since and until 1.1032 in today's recovery. We topped out at 1.1121 on lows of 1.1049 in the volatility of the Nonfarms Payroll release and have been confined to 1.1070/12 since.
EUR/USD on the Greece referendum
The latest developments regarding Greece continue to dominate the newswires but there is little evidence yet of any material negative contagion to global financial markets as analysts at Bank of Tokyo-Mitsubishi UFJ, Ltd explained.
"The Greek referendum on Sunday will be important in determining whether the risk of Grexit continues to increase and potentially becomes more likely. The outcome from the referendum remains highly uncertain." The euro may stage a limited relief rally although a return to relative fundamental drivers would likely see the euro soon come back under downward pressure."
In a breakdown of the implications for EUR/USD, the analysts wrote "If the “Yes” vote prevails, the current Greek government would likely be replaced by a national unity government tasked with securing an agreement with the creditors. The euro may stage a limited relief rally although a return to relative fundamental drivers would likely see the euro soon come back under downward pressure."
EUR/USD technically bearish
While EUR/USD is staging a minor recovery, the theme for the major remains in the hands of the bears. Karen Jones, Head of FICC Technical Analysis at Commerzbank explained their stance is neutral to negative noting how the the pair had started to erode the cloud, the base of which lies at 1.0994.
Analysts at KBC explained that below 1.0819 will expose further downside.