26 May 2015
EUR/USD: Break below 1.10 allows 1.0640 - BNZ
FXStreet (Bali) - Raiko Shareef, Currency Strategist at Bank of New Zealand, notes that the recent push below 1.10 in EUR/USD allows now a test of 1.0640.
Key Quotes
"For the technically-minded, EUR/USD’s slip below 1.10 is rather exciting, as it breaks a key line of support at 1.0995. Overnight, EUR/USD bounced off the 50-day moving average at 1.0954, but we don’t imagine it would have held, had there been materially negative news. The push below 1.10 opens up the prospect of a quick test of 1.0640. EUR currently sits 0.3% lower at 1.0980."
"From a fundamental perspective, the ongoing negotiations between Greece and its creditors remains front of mind, especially with the wall of repayments due to begin in just days, starting with a €300m chunk to the IMF on 5 June."
"The market is positioned for a deal to be struck by end- May, but events over the weekend would have caused some unease. In particular, a faction of the ruling Syriza party only narrowly lost (75-95) a motion calling for the Greek government to halt talks with creditors if they continue to “blackmail” the country. Instead, the country should seek “an alternative solution”."
Key Quotes
"For the technically-minded, EUR/USD’s slip below 1.10 is rather exciting, as it breaks a key line of support at 1.0995. Overnight, EUR/USD bounced off the 50-day moving average at 1.0954, but we don’t imagine it would have held, had there been materially negative news. The push below 1.10 opens up the prospect of a quick test of 1.0640. EUR currently sits 0.3% lower at 1.0980."
"From a fundamental perspective, the ongoing negotiations between Greece and its creditors remains front of mind, especially with the wall of repayments due to begin in just days, starting with a €300m chunk to the IMF on 5 June."
"The market is positioned for a deal to be struck by end- May, but events over the weekend would have caused some unease. In particular, a faction of the ruling Syriza party only narrowly lost (75-95) a motion calling for the Greek government to halt talks with creditors if they continue to “blackmail” the country. Instead, the country should seek “an alternative solution”."