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EUR/USD hugs 1.10 amid final Greek deadline on Sunday –

The EU Summit resulted in a decision of a new deadline: Sunday, July 12th. Until then, Greece needs to secure a deal for the short term, in order to open the banks, and for the long term, in order to allow it to grow. Otherwise, the chances of a Grexit are extremely high.

EUR/USD has emerged from the lows  in a mix of some optimism and a correction after the fall. Here is the latest.

Developments

Before the Summit

  • The group of euro-zone finance ministers convened for the first time with the new Greek finance minister Euclidis Tsakalatos
  • No new proposal were brought to the table.
  • Greek PM Alexis Tsipras met with German Chancellor Angela Merkel and French President Francçios Hollande.
  • Merkel stated that there is no basis for  negotiations at the moment.
  • Italian PM Renzi said “a deal could be reached within hours” and that helped the euro.

Summit Decisions

  • In the summit of euro-zone states, A new, tight timetable was decided upon.
  • The Eurogroup will receive new Greek proposals today,  Wednesday, July 8th.
  • A full program is expected from Greece until Friday at  6:30 GMT.
  • The Eurogroup will meet on Saturday.
  • A full European Union Summit, including all 28  members will attempt to agree on a new deal for Greece.

Key comments:

  • EC President Juncker mentioned that the a full  plan for a Grexit has been prepared, even though Greece talked about going to court upon an attempt to kick it out of the euro-zone.
  • Merkel said she is not optimistic.
  • Moscovici remains optimistic for a deal, but says the ball is in Greece’s court.
  • Tsipras remains optimistic. He will address the European Parliament shortly.

More:  ECB has its fingers on the Grexit trigger – will it pull it?

EUR/USD movements

After opening with yet another weekend gap and closing it, EUR/USD fell to new lows yesterday, at 1.0915.  This was partly fueled by  optimism that came from  Renzi and some selling of dollars, after a big rally beforehand.

1.1050 is weak resistance, followed by 1.1130. 1.10 is a pivotal point. 1.0915 emerges as the first line of support, followed by 1.0820.

More:  Short EUR/USD Remains Our Flagship Trade – Here Is Why – Barclays

And here is how it looks on the chart:

Euro dollar July 8 2015 technical chart ahead of final Grexit deadline

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.