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EUR/USD weighed by Greek worries – approaching support

EUR/USD  does not enjoy the weakness of US indicators anymore. It now feels the worries about the situation in Greece, and is down around 80 pips in the new week, erasing previous gains.

Can it extend the falls and go deeper in the range?

Negotiations between Greece and its European partners / creditors has intensified according to sources, and there’s reason for worry. Payments due to the IMF, which had its meetings in Washington are due, and so are the state’s normal payments for salaries and pensions.

A developed country has never asked for an extension of payments to the IMF and that would be a precedent. However, there were already reports about having Greece  default and stay in the euro-zone.

The meetings in Riga on Friday are supposed to see a conclusion of the talks, but May 11th seems to the new “deadline” The European Union’s deadlines are somewhat flexible.

While many say that the euro-zone can  ring-fence a Grexit and remain strong, the woes certainly impact the common currency. Investors know that once the euro is reversible for one country, and it doesn’t matter which, the same thing can happen elsewhere. It’s a path nobody wants to walk through.

EUR/USD has support at 1.0710, followed by 1.0670 and 1.0615. Resistance awaits at the round 1.08 level.

More:  USD Index, EUR/USD: Trending Or Turning? – Goldman Sachs

Greece problems April 20 2015 technical euro dollar chart

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.