14 Jul 2015
EUR/USD: dropping away below key 1.10 handle
FXStreet (Guatemala) - EUR/USD is currently trading at 1.0988 with a high of 1.1008 and a low of 1.0980 at time of writing.
EUR/USD has suffered supply on the aftermath of the Greek deal being agreed in principal, after an initial relief rally that was quashed when markets digested the implications of putting the reforms for the Greek parliament to decide upon, the time it could take for a new bailout option to be discussed, negotiated and approved and the underlying divergences between that of the ECB and the Fed, all supportive of demand for the greenback.
Moreover, there are complex decision to be made in respect of bridge financing Greece while we await the bailout discussions that could take up to four weeks and the Greek parliament outcome this Wednesday.
EUR/USD price action
EUR/USD recovered from 1.109 lows on the bearish gap and ambitious bulls took the major up to 1.1197 before supply scored 1.1053 that equated in to a drift lower throughout the US session, supported by 1.10 the figure until just before the Tokyo open that penetrated the handle and brings us along to current levels sub 1.1000 and a low of 1.0980 at time of writing.
Technically, the next major level of support lies 1.0916 ahead of 1.0819 the May low. Initial resistance on a rebound lies at 1.1280/1.1320 while the wider range is between 1.0800 and 1.1440/34.
EUR/USD has suffered supply on the aftermath of the Greek deal being agreed in principal, after an initial relief rally that was quashed when markets digested the implications of putting the reforms for the Greek parliament to decide upon, the time it could take for a new bailout option to be discussed, negotiated and approved and the underlying divergences between that of the ECB and the Fed, all supportive of demand for the greenback.
Moreover, there are complex decision to be made in respect of bridge financing Greece while we await the bailout discussions that could take up to four weeks and the Greek parliament outcome this Wednesday.
EUR/USD price action
EUR/USD recovered from 1.109 lows on the bearish gap and ambitious bulls took the major up to 1.1197 before supply scored 1.1053 that equated in to a drift lower throughout the US session, supported by 1.10 the figure until just before the Tokyo open that penetrated the handle and brings us along to current levels sub 1.1000 and a low of 1.0980 at time of writing.
Technically, the next major level of support lies 1.0916 ahead of 1.0819 the May low. Initial resistance on a rebound lies at 1.1280/1.1320 while the wider range is between 1.0800 and 1.1440/34.