After a landslide referendum victory, the eurozone respected the result, but the ECB has tightened the liquidity conditions for the Greek banking system.
The eurozone’s leaders will meet in Brussels to discuss the Greek issue. Besides, the heads of 28 Member State will attend the summit scheduled for the Sunday to come.
We are approaching big events. The Eurogroup’s meeting and the FOMC meeting minutes release might increase today’s volatility.
Technical view: the pair is trading below the 20Wsma and all daily moving averages. The nearest resistance is seen at 1.1020 and 100Dsma is found at 1.1040. The weekly resistance is seen at 1.1121, 1.1150, and 1.1280. Until the pair closes below 1.1280, gates are open for 1.0800 initially, 1.0600 and 1.0500 later. The long-term picture favours moving to the sub-level of 1.000.
At yesterday’s session, we forecasted «A daily close below 1.1040 made bulls lose 1.0950 immediately. The real selling emerges below 1.0950 towards fresh lows, made low at 1.0916. The pair has been moving towards lower highs and lower lows in the H1 and H4 chart.” All these factors favor bears.
Developments in Greece are the only driving factor during this week.
Intraday: the pair is trading at 1.1000 compared to Tuesday’s closing price of 1.1012. Intraday resistance is seen at 1.1020, 1.1050, and 1.1100. Small buying trade is available above 1.1030 with targets at 1.1050 and 1.1090, which looks risky. Safe buying is available above 1.1125 with targets at 1.1150 and 1.1170. Strong bears can start selling between 1.1100 and 1.1150 sl 1.1200. At yesterday’s session, we advised selling below 1.1000 towards 1.0960, 1.0930, and 1.0900. In the four-hour chart, we can observe mild positive divergence indicated moving slightly upwards before further decline. In the extreme case, the pair is likely to stretch up to 1.1100 or 1.1120. Use any rise to sell. Today’s trade is likely to be driven by the Eurogroup’s meeting outcome and the FOMC meeting minutes.
Intraday fresh selling is available below 1.0970 with targets at 1.0940, 1.0900, 1.0880, 1.0850, and 1.0800 during a day.
The material has been provided by InstaForex Company – www.instaforex.com