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Euro shaken by Greece
EUR/USD is feeling the pressure of Greece’s repayment to the International Monetary Fund (IMF) which is due tomorrow. Even though the indebted nation repaid €200 million to the IMF for a separate repayment last week, the market has dwindling confidence in the nation’s ability to repay its debts.
The Eurogroup is meeting today in Brussels, and Jeroen Dijsselbloem, who chairs the group, is holding out little hope of a deal being struck. Greece now has until the end of June to reach an agreement with its creditors over reforms that are acceptable to both sides, but the Syriza party is still playing hard-ball with the country’s creditors.
The 200-hour moving average will act as a barrier in the $1.12 region, and the overnight low of $1.1133 will be the initial target. A move through that level will put $1.11 in sight, and the next level of support will be $1.10. If $1.12 is cleared, then the resistance in the $1.1275 region will be brought into play, and then traders will look to $1.13.