Greek crisis continues to push EUR/USD lower
The euro has been a highly volatile and unpredictable currency over recent weeks, and this week appears to be no different. The gap lower at the start of play this week failed to replicate last week where it took back all of the weekend losses and more. Instead we have seen the price move back into Friday’s range and sell off at an inside trendline. I do expect EUR/USD to perform in a similar manner to the DAX, and that is for further losses.
The $1.1 handle is a major support level to watch out for which has held up the price so far this week. However, while I am bearish, I would be hesitant in trading EUR/USD simply due to the fact that it is hugely impacted by unscheduled Greek announcements, which means that there is little chance of mitigating and planning for any adverse fundamental impacts to your trades.