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EUR/USD broke out of the slow range trading and is dropping sharply, currently at 1.2790. Stop loss orders might have accelerated the fall.

The pair is now headline towards the next minor support line.

EUR USD Breaks Below 1.28 as Greek elections announced
EUR USD Breaks Below 1.28 - Click image to enlarge

Euro/dollar got the trigger it needed for another leg down: the last meeting between Greek political leaders and the president ended with no deal.

The President of the Hellenic Republic declared that elections will be held in 3 to 5 weeks.

The pair is still above the year-to-date lows reached in January: at 1.2623. 1.2770 isn’t a strong support line, as 1.2818 wasn’t. Before the YTD low, further support is found at 1.2663.

Earlier, the euro was holding on quite well, thanks to Germany’s surprisingly strong growth. Germany grew by 0.5%, much more than only 0.1% that was expected.

This strong growth rate is the reason that the euro-zone escaped official recession. Nevertheless, the euro found it hard to rise due to the Greek uncertainty.

Now the situation in Greece is more certain regarding the elections, but uncertain regarding the future.

For more, see the EUR/USD forecast.