Euro eyes Greek deal
The euro has gained ground overnight – but not due to confidence in the single currency; the move was attributed to a broad dip in the dollar. The focus is still on Greece, and the indebted country is due to repay the International Monetary Fund €460 million tomorrow. Even though this would go a long way to repairing the country’s tattered reputation, its dealing with Russia is creating concerns within Brussels.
The meeting between Alexis Tsipras and Vladimir Putin yesterday caused concerns in Europe, as it could lead to Greece running away from its obligations with the assistance of Russia. Moscow is already out in the cold over the situation in Ukraine, and any assistance to Athens would setback both nations’ relationship with Europe, which will put pressure on the euro.
EUR/USD is encountering resistance at the 200-hour moving average of $1.0860, if this level is held the support at $1.08 will be brought into play. A move through that metric will make $1.0720 the target. If the 200-hour moving average is cleared, $1.09 will be the initial target and then the resistance at $1.0950 will be in sight.