FXStreet (Edinburgh) – According to Eric Theoret, Currency Strategist at Scotiabank, the resumption of the bearish momentum in the pair could drag it to the 1.0820 area.
Key Quotes
“Risk is escalating as we consider the lack of convergence in key players’ tone, as well as the extension of Greece’s banking holiday with capital controls set to continue through Wednesday”.
“ECB ELA has been maintained at its levels from late June, however collateral haircuts have been adjusted in a reflection of rising concerns over the quality of ‘government-linked assets’.
“We continue to look for a test of the May lows near 1.0820”.
“Momentum indicators hint to acceleration, and the RSI at 38 leaves ample space for further decline. Focus is on the May low near 1.0820. Resistance is expected at 1.1050”.
(Market News Provided by FXstreet)