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29 Jun 2015
EUR/USD on free-fall through 1.10 after Greece headlines
FXStreet (Bali) - EUR/USD is down over 1 cent and a half from its NY closing level, currently testing bids at 1.10 handle - level now broken as panic selling accelerates - following a 1.1162 close last Friday.
Market caught off guard by latest Greek developments
News over the weekend that a referendum on Greece's new funding conditions offered by international creditors has been called, followed by the bombshell that Greek banks will close from Monday to Friday - until referendum on July 5th out of the way - , with daily withdrawal limits of 60 euros being proposed by the Greek Financial Stability Council, has sent the Euro into a tailspin.
EUR/USD breaks below 1.10
Technically, the breakout of 1.10 round number suggests that a rapid descent towards 1.0920/09 vicinity is the next target to achieve by sellers, ahead of 1.0860s (daily lows late May) ahead of 1.08 level. On the upside, any rebound should be contained now by intraday sellers around the 1.10. If the gap is not closed within the first few hours (extremely unlikely), expect the selling dynamics to persist for the rest of the day heading into Europe, and most probably for most of the week as risk aversion prevails.
Market caught off guard by latest Greek developments
News over the weekend that a referendum on Greece's new funding conditions offered by international creditors has been called, followed by the bombshell that Greek banks will close from Monday to Friday - until referendum on July 5th out of the way - , with daily withdrawal limits of 60 euros being proposed by the Greek Financial Stability Council, has sent the Euro into a tailspin.
EUR/USD breaks below 1.10
Technically, the breakout of 1.10 round number suggests that a rapid descent towards 1.0920/09 vicinity is the next target to achieve by sellers, ahead of 1.0860s (daily lows late May) ahead of 1.08 level. On the upside, any rebound should be contained now by intraday sellers around the 1.10. If the gap is not closed within the first few hours (extremely unlikely), expect the selling dynamics to persist for the rest of the day heading into Europe, and most probably for most of the week as risk aversion prevails.