FXStreet (Edinburgh) – The technical perspective for EUR/USD has shifted to bearish in the near term, according to Eric Theoret, Currency Strategist at Scotiabank.
Key Quotes
“EUR is vulnerable, trading on headline risk while maintaining a relatively limited near-term range as market participants consider the steady barrage of commentary from various officials involved in the negotiations”.
“Disagreement continues to center on the means by which Greece will improve its fiscal situation, with creditors looking to expenditure cuts (pensions) as PM Tsipras maintains a bias toward revenues (VAT, corporate tax rates)”.
“Fresh deadlines have been created and extended, however the ultimate deadline remains June 30—the due date for Greece’s IMF payment”.
“EUR risk remains balanced on the tone of negotiations, with positive developments providing for relief rallies as negative headlines provide for downward pressure”.
“Momentum has turned bearish, however support continues to be observed at the 50 day MA 1.1137. EUR appears to be struggling to make gains above its 21 day MA 1.1217 and we remain biased to further downside. We look to 1.1082 as the next key support level, representing the 38.2% Fibo retracement level of the March-May rally”.
(Market News Provided by FXstreet)