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Greek saga continues
The meeting of the eurozone finance ministers will take place today, and Greece will be the main topic of discussion. Germany has rejected Greece’s application to extend the bailout but that is not to say another proposal won’t be put on the table by Greece.
The game of cat and mouse between Greece and the rest of the eurozone continues and Greece would like to receive assistance without any new terms or conditions. On the other hand, the European Central Bank does not want to appear to be weak, and that is why it will insist on some terms being attached.
The French and German PMI reports on manufacturing and services were a mixed bunch, and it led to some short-term selling of EUR/USD.
The currency pair is encountering resistance at the 200-hour moving average of $1.1370 and if this level is held it will make $1.13 the target. If the 200-hour MA is retaken the upside resistance at $1.14 will brought into play, and then $1.1450 will be in sight.