Euro bounces back
EUR/USD has pulled back some of the losses it endured after the catastrophic news that Greek banks will remain shut until next week, and the nation is set for a crunch referendum at the weekend. It must be said that the euro is holding up relatively well against the dollar in what could be the beginning of the end for the Greece’s membership of the currency union. For the time being, the dust has settled, and confidence is coming back – but should the situation in Greece take another sour turn, EUR/USD will quickly plunge.
EUR/USD has been trading higher this morning and the $1.10 mark is providing support, but the $1.11 level is proving a struggle for the currency pair. If $1.11 is cleared again the gap created at $1.1160 will be the target, and then $1.12 will be brought into play. An important level for the currency pair over the past three months has been $1.10. If it is cleared the support at $1.08 will be the next level to watch.