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25 May 2015
EUR/USD: Selling-off on Greek headlines
FXStreet (Bali) - EUR/USD is on a frantic decline in thin Asian markets, following headlines from Greek Interior Minister, Nikos Voutsis, who said the country has run out of money to make repayments to the IMF of 1.6 billion euro, expected next month.
The pair trades at session lows, around 1.0965/70, over 30/25 cheaper than its NY close last Friday. The bearish momentum in the Euro is well established, on the back of last Friday's slightly upbeat US CPI, and with Fed Chair Yellen sounding quite upbeat on monetary policy, saying that a rate hike later this year would be an appropriate move, despite failing to provide clues on the timing.
From a technical point of view, according to Valeria Bednarik, Chief Analyst at FXStreet: "Bigger time frames show that the extreme oversold conditions reached earlier this year have been erased, and that the technical indicators have turned back lower, suggesting the latest recovery has been corrective. The pair has a strong static support around 1.0960, and a break below it should trigger stops and fuel the slide this Monday, with sellers now probably surging around the 1.1050 region."
The pair trades at session lows, around 1.0965/70, over 30/25 cheaper than its NY close last Friday. The bearish momentum in the Euro is well established, on the back of last Friday's slightly upbeat US CPI, and with Fed Chair Yellen sounding quite upbeat on monetary policy, saying that a rate hike later this year would be an appropriate move, despite failing to provide clues on the timing.
From a technical point of view, according to Valeria Bednarik, Chief Analyst at FXStreet: "Bigger time frames show that the extreme oversold conditions reached earlier this year have been erased, and that the technical indicators have turned back lower, suggesting the latest recovery has been corrective. The pair has a strong static support around 1.0960, and a break below it should trigger stops and fuel the slide this Monday, with sellers now probably surging around the 1.1050 region."