20 Feb 2015
EUR/AUD: Looks neutral despite Greece's bailout agreement
FXStreet (Guatemala) - EUR/AUD is currently trading at 1.4516 with a high of 1.4594 and a low of 1.4384.
EUR/AUD has drifted to the downside on the agreement between the Eurogroup and Greece. Finally, after laborious talks and a strung out affair over the crisis, the two parties have found some common ground and they are actioning what has been agreed upon as the first steps towards accommodating Greece's requirements of financial support from the IMF and EU members.
There has been a four month extension to the bailout programme to offer Greece time to recapitalize their banks. This will also allow time for all parties to continue with the reform and reviews of the current agreement. There will be flexibility to allow time to bridge discussions between Eurogroup, Greece and EU institutions for a possible follow up agreement where the IMF will continue to play its roll.
On Monday, the work starts and the Greeks have to deliver the list of reforms in line with what has been agreed today. A review will be made upon the list by the EU members on Tuesday.
Technically, from a broader perspective, we are in neutral territory. Analysts at TD Securities explained that the rejection of 1.49 looks impressive on the longer-term charts."Perhaps tilts the risk towards a little more weakness overall going forward but the early 2015 rebound from 1.3980 was also a very strong, longer-term technical positive", explained the analysts. "Neutral momentum readings on the medium-to-longer term charts support the impression of a broad range developing here in the next few weeks."
EUR/AUD has drifted to the downside on the agreement between the Eurogroup and Greece. Finally, after laborious talks and a strung out affair over the crisis, the two parties have found some common ground and they are actioning what has been agreed upon as the first steps towards accommodating Greece's requirements of financial support from the IMF and EU members.
There has been a four month extension to the bailout programme to offer Greece time to recapitalize their banks. This will also allow time for all parties to continue with the reform and reviews of the current agreement. There will be flexibility to allow time to bridge discussions between Eurogroup, Greece and EU institutions for a possible follow up agreement where the IMF will continue to play its roll.
On Monday, the work starts and the Greeks have to deliver the list of reforms in line with what has been agreed today. A review will be made upon the list by the EU members on Tuesday.
Technically, from a broader perspective, we are in neutral territory. Analysts at TD Securities explained that the rejection of 1.49 looks impressive on the longer-term charts."Perhaps tilts the risk towards a little more weakness overall going forward but the early 2015 rebound from 1.3980 was also a very strong, longer-term technical positive", explained the analysts. "Neutral momentum readings on the medium-to-longer term charts support the impression of a broad range developing here in the next few weeks."