6 Jul 2015
EUR/USD: Bulls struggling to fill in Greek referendum bearish gap
FXStreet (Mumbai) - The recovery in the EUR/USD pair post Greek referendum was stalled at 1.1057 levels, with major now stabilizing near 1.1035 levels. The EUR bulls is fighting to regain lost ground after the major opened with a wide bearish gap after official results showed Greeks backing Prime Minister Tsipras's call for no more austerity measures in Greece by voting "No" in the referendum.
EUR/USD recovers from 1.0970 weekly lows
The EUR/USD pair trades -0.68% at 1.1035, attempting a bounce towards 1.11 handle. The major recovered half its slide and strives to fill in the overnight downward gap witnessed after the European currency shed as much as 2% after the Greeks voted to refuse further austerity measures, conditions requested from a debt-ridden country by international creditors.
While EUR/USD keeps losses amid referendum led risk-off moods in the mid-Asian trades, focus now shifts to the emergency Euro group meeting scheduled later today to discuss consequences and probable outcomes post this Greek event.
What Next?
Finance Minister Yanis Varoufakis and the Bank of Greece will hold an emergency meeting with Greek major commercial lenders on early Monday morning post the referendum results.
While European Central Bank (ECB) policymakers will meet on Monday to discuss the outcome of the Sunday referendum in Greece, a week after putting a cap on emergency funding for Greek banks. Emergency Liquidity Assistance (ELA) for Greek lenders is currently capped at €89 billion.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1057 (Today’s High) levels, above which gains could be extended to 1.1118 (July 3 High) levels. On the flip side, support is seen at 1.0994 (Today’s Low) below which it could extend losses to 1.0970 (July 5 Low) levels.
EUR/USD recovers from 1.0970 weekly lows
The EUR/USD pair trades -0.68% at 1.1035, attempting a bounce towards 1.11 handle. The major recovered half its slide and strives to fill in the overnight downward gap witnessed after the European currency shed as much as 2% after the Greeks voted to refuse further austerity measures, conditions requested from a debt-ridden country by international creditors.
While EUR/USD keeps losses amid referendum led risk-off moods in the mid-Asian trades, focus now shifts to the emergency Euro group meeting scheduled later today to discuss consequences and probable outcomes post this Greek event.
What Next?
Finance Minister Yanis Varoufakis and the Bank of Greece will hold an emergency meeting with Greek major commercial lenders on early Monday morning post the referendum results.
While European Central Bank (ECB) policymakers will meet on Monday to discuss the outcome of the Sunday referendum in Greece, a week after putting a cap on emergency funding for Greek banks. Emergency Liquidity Assistance (ELA) for Greek lenders is currently capped at €89 billion.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1057 (Today’s High) levels, above which gains could be extended to 1.1118 (July 3 High) levels. On the flip side, support is seen at 1.0994 (Today’s Low) below which it could extend losses to 1.0970 (July 5 Low) levels.