The euro/dollar’s main scenario came off on Friday. The bears couldn’t manage to overcome 1.1290. From the D1, the euro renewed to 1.1365. Support for the euro came from the ECB’s decision to increase the amount of emergency liquidity assistance (ELA) by 1.8 billion euros.
Market participant’s attention is focused on the developments surrounding Greece. On Monday there’s an unscheduled Eurozone summit to discuss the Greek debt situation. Before the summit there’s an unplanned meeting for the finance ministers of the respective countries.
Main news of the day:
- Euro Commission meeting;
- At 17:00 GMT the Eurozone will present the consumer confidence indicator for June. The US is publishing data on May housing sales volumes in the secondary market.
- Intraday target: maximum - 1.1390, minimum – 1.1345, close – 1.1380;
- Intraday volatility for last 10 weeks: 140 points/
In Asia the euro/dollar is trading 1.1382. Since the market opening the euro’s nudged towards 1.1395/14. However, whilst Athens and its creditors haven’t reached an agreement, buying the euro is risky business.
Since the euro/dollar closed pretty much without change in comparison with Thursday, today I’m looking at a flat. Although I’m not sure whether the results of the emergency meeting will keep the euro dollar by the LB.
The situation surrounding Greece is still uncertain. All market participant attention is on the unplanned Eurozone summit. Today there are no statistics from Europe. Since today is Monday, I’ve gone for a flat till Tuesday. However, this doesn’t mean that the market will do what I think. Any positive/negative news from Greece will pile the pressure on the euro.
The euro will keep trading under the strong support zone of 1.1466-1.1533. On Friday the sellers didn’t manage to break 1.1282. The euro/dollar rate closed above the trend line. The price remains inside the upward triangle. Here there’s either an exit to 1.1580 or a return to 1.1170. Let’s have a look at the Weekly.
Three bull tailed candles and nothing interesting. The eurobulls can’t give an impulse for a hastening since there’s low demand for the euro due to the Greek problem.