FXStreet (Barcelona) – According to the Global Strategy Team at TD Securities, any EUR/USD move towards 1.08 will signal the resumption of further downside for the pair, while EUR/GBP sees potential for a move towards 0.65/0.66 range.
Key Quotes
“Within FX, the price action is unambiguously negative for EURUSD technically, with rebounds likely severely limited to the 1.1050 area, while any break below 1.08 would be a substantial signal of further downside. But at this stage, EURUSD is the limbo trade—the only question is how low it can go. But EURUSD is likely a less clean way to trade the risk off move given any significant Eurozone shock will see the market reduce or reverse it’s long European equity positions and impact the FX hedges there, so we would prefer short EURJPY as the safest FX trade on the Greek crisis.”
“EURGBP has tested the area below 0.7000 which opens up room for a move to the 0.65/0.66 range technically as long as the BoE does not see any reason to adjust their recent tilt towards a hawkish message.”
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