After we have seen a second week of Sunday gaps in EUR/USD result in a filled gap, we may now be seeing a deeper fall.
EUR/USD is trading below 1.10, close to the recent Sunday gap levels but still above the previous one. This happens as talks around Greece intensify.
Greeks gave a big NO to the creditors’ proposals. This strengthened the political capital of Greek PM Alexis Tsipras, who got the opposition rallying behind him as well. He “sacrificed” his finance minister Yanis Varoufakis which quit and was replaced by Euclidis Tsakaltos, a man who has a softer tone but has the same stance.
As Tsakaltos heads to talks in Brussels, a rift between euro-zone countries is beginning to emerge. Italian PM Renzi talks about moving away from technocratic positions and into a solution of values.
Perhaps more importantly, French PM Manuel Valls said that debt restructuring is “not taboo”. Yet for Germany it is still is taboo.
Eurogroup ministers meet later today and this is followed by a meeting of the leaders later on. The risk of a Grexit is always on the cards.
More: What Risk Resilience Implies For Grexit & The EUR – Deutsche Bank
EUR/USD
EUR/USD has reached a low of 1.0960, around 10 pips above the previous Sunday gap but around 15 pips below the most recent Sunday gap that followed the Greferendum.
Further support awaits at 1.0820. Here is how it looks on the charts:
More: EUR/USD: Trading the US JOLTS Job Openings
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