Greece drags euro

The euro’s amazing and surprising run seems to be slowly grinding to a halt now as Greece jitters are slowly returning to the fore.

EUR/USD rallied from around $1.0500 back in April to top out just shy of $1.1400 last week before then reversing. Optimism about Greece was a key driver of the gains, along with some life coming out of the greenback. However, not even a disappointing non-farm payrolls reading could save the pair as the greenback maintained gains against the single currency.

EUR/USD has since slipped to $1.1150 in Asian trade with some concerns around Greece causing some selling. Some traders were hoping an agreement will be finalised at today’s Eurogroup meeting. However, the commentary ahead of the meeting has been increasingly negative, with suggestions German Chancellor Angela Merkel is under pressure to let Greece go.

From a price action perspective, it seems like a short-term uptrend support line has been broken and it’ll be interesting to see if this is the beginning of a sustained move lower. A move back towards $1.1000 looks likely in the near term.

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