FXStreet (Bali) – According to Chris Capre, Founder at 2ndSkies, Greece leaving the EU would at least equall a 1500+ move south in EUR/USD, and could easily see us hitting 85 cents within a few months.
Key Quotes
“Everything depends upon a Greek deal at this moment. Just the fact none is in play yet (before June 30th deadline) is already causing this kind of risk premium to the bear side.”
“A full blown no deal by June 30th and default would easily dice into this box/zone of support, and likely more.”
“I’m actually suspecting Greece leaving the EU would at least = a 1500+ move south (so sub parity), and could easily see us hitting 85 cents within a few months.”
“I’m guessing at some point along the way the ECB would intervene to avoid a panic, and I’m sure the plunge protection team at the FED will be working overtime the next few days.”
“Regardless, until there is any deal, expect massive downside risk and volatility on EUR pairs.”
“The bottom of this key level/blue box is around 1.0824. Breaking below this sets up 1.0675 and 1.0540.”
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