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Sad Valentine’s for EUR/USD – Juncker Broke its Heart

Head of Eurogroup Jean-Claude Juncker poured more cold water on the markets, that enjoyed the Greek approval of new austerity. Juncker said that Greece has not met all the conditions for receiving the bailout.

EUR/USD moves lower, getting close to important support.

Euro/dollar is now at 1.31, after flirting with the 1.3212 resistance line earlier in the day. 1.3060 provides significant support before the round number of 1.30.

Luxembourg’s PM Juncker is still awaiting a serious commitment from all members of the Greek coalition, that they will proceed with the promised austerity also after the elections.

The level of trust between Greece and all the senior EU officials is at rock bottom, to say the least.

The leading candidate to head the next government, Antonis Samaras, said that his party will renegotiate the terms after the elections. This statement came immediately after his party voted for the recent austerity measures (including a major cut to the minimum wage).

The EU / ECB / IMF troika required the measures in order to secure the second bailout program, which includes a haircut for private bondholders.

For more on the euro, see the EUR/USD forecast.

The clock is ticking towards the March 27th deadline (Greek bond  redemption  due on March 20th + one week of grace).

Update: There are doubts about the planned meeting of the Eurogroup on Wednesday. There might be a conference call. If there is no conference call, the euro could further fall.

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.