FXStreet (Bali) – EUR/USD is the heaviest in early Asia, falling to a low of 1.0942, off 40 pips since Friday’s NY close, and shrugging off potential positive news out of Greece over the weekend, following Greek Interior Minister comments about the country’s willingness to reach a compromise with international lenders this week.
Hedging against Greek risks?
The pair has accelerated its losses, with no catalyst identified that may justify the decline. There a various theories about what could be driving the losses, such as hedging against risks of a Greek default ahead of its next payment to the IMF, due on June 5th. Another case that may be weighing on the Euro is the offset of last Friday’s month end buying into the 1.10 move. There has also been reports that Eur/cross have been sold by North Asian regional prop accounts via EUR/AUD and EUR/NZD.
EUR/USD technicals
The depreciation currently seen in the EUR/USD has breached an ascending trednline connecting swing lows since the May 27th, suggesting that any recovery back towards the origin of the selling flows might see a growing numbers of sellers defending the level. Should the downside pressure persist, immediate hourly levels that hold the most relevance are 1.0925 – May 29th low – followed by 1.09 round number. On the topside, 1.10 is the key area that needs to be regained.
(Market News Provided by FXstreet)