FXStreet (Barcelona) – Greece uncertainty has led the EUR/USD to struggle around the 1.10 handle, and technicals remain in favour of a move lower towards 1.0950/60 level, according to Valeria Bednarik, Chief Analyst at FXStreet.
Key Quotes
“The forex market is once again depending on risk sentiment, as the Greek referendum resulted in a victory of those who are against more austerity. The Greek government welcomed the result as a win of its policy, assuming its creditors will come with a more humble stance to the negotiation table. The optimism of a new deal to save the country however, diluted in the European morning, as the FM Varoufakis resigned to its position on pressures from its counterparts, whilst Germany has made it clear that it is in no rush to resume negotiations. The country is in default, and running out of cash, despite the capital controls imposed last week.”
“As for the EUR/USD pair, it surged up to 1.1095, but is now struggles around the 1.1000 level, maintaining a short term negative bias, as the 1 hour chart shows that the price was rejected from its 100 SMA and even extended below a bearish 20 SMA, whilst the technical indicators have turned south and stand now in negative territory.”
“In the 4 hours chart, the price retreated after failing to overcome its 20 SMA, whist the technical indicators are slowly gaining bearish potential in negative territory, supporting the longer term view and a retest of the 1.0950/60 region.”
“Support levels: 1.0955 1.0910 1.0860”
“Resistance levels: 1.1050 1.1090 1.1120”
(Market News Provided by FXstreet)