FXStreet (Edinburgh) – In the opinion of Strategist Kit Juckes at Societe Generale, the decline in EUR/USD is expected to resume and to target the mid-1.06s.
Key Quotes
“An a quiet day approaching month-end, EUR/USD ‘should’ bounce but if it doesn’t, 1.0650 is the next target”.
“If Greek debt talks are going to meet all their cliché-requirements by ‘going down to the wire’ before ‘the can is kicked down the path’, the next few days are crucial”.
“Reaching agreement before the last possible moment would be atypical of the way this story has unfolded but even if we do get ‘a deal’, execution won’t be smooth”.
“With the Euro bouncing a bit on optimism since yesterday morning, month-end flows are probably supportive and the market is still short Euros”.
“The 9-day RSI bounced off support just as it did in mid-April, and the very short-term has a possibility of the recovery going further”.
“But relative rate trends are pointing firmly lower as the US yield curve flattens and it’s only a matter of time before the downtrend resumes”.
(Market News Provided by FXstreet)