13 Jul 2015
EUR/USD tests 1.1100, Greek deal-rally fizzles out
FXStreet (Mumbai) - The sudden rally in the EUR/USD pair to fresh highs shy of 1.12 handle fizzled out and the European currency returned to familiar range above 1.11 handle as markets now weigh reports that Greece and the EU have found a common ground and a Greek deal is finally made.
EUR/USD rejected at 1.1197
The EUR/USD pair trades -0.33% lower at 1.1122, retracing from a spike to 1.1197 levels after Greek deal news. The European currency remained volatile versus the US dollar as traders remain cautious despite the latest Greek deal news. While markets also assess the impact of the Greek deal and the latest statement by EU leaders thereby keeping EUR/USD undermined.
European Council President Donald Tusk said that several national parliaments will have to approve the agreement, including the Greek parliament as the deal includes “strict conditions."
While German Chancellor Angela Merkel said that now there is "no need to discuss any Plan B" for the single currency bloc, but she wouldn't comment on details of the ESM loan.
Traders now eye ECB ELA decision due later today as EU leaders continue to cross the wires providing latest headlines on Greece. Greece is due to repay more than €7 billion to the European Central Bank in July and August.
EUR/USD Technical Levels<
The pair has an immediate resistance at 1.1156 (May 20 High) levels, above which gains could be extended to 1.1215 (July 10 High) levels. On the flip side, support is seen at 1.1055 (July 10 Low) below which it could extend losses to 1.0992 (July 9 Low) levels.
EUR/USD rejected at 1.1197
The EUR/USD pair trades -0.33% lower at 1.1122, retracing from a spike to 1.1197 levels after Greek deal news. The European currency remained volatile versus the US dollar as traders remain cautious despite the latest Greek deal news. While markets also assess the impact of the Greek deal and the latest statement by EU leaders thereby keeping EUR/USD undermined.
European Council President Donald Tusk said that several national parliaments will have to approve the agreement, including the Greek parliament as the deal includes “strict conditions."
While German Chancellor Angela Merkel said that now there is "no need to discuss any Plan B" for the single currency bloc, but she wouldn't comment on details of the ESM loan.
Traders now eye ECB ELA decision due later today as EU leaders continue to cross the wires providing latest headlines on Greece. Greece is due to repay more than €7 billion to the European Central Bank in July and August.
EUR/USD Technical Levels<
The pair has an immediate resistance at 1.1156 (May 20 High) levels, above which gains could be extended to 1.1215 (July 10 High) levels. On the flip side, support is seen at 1.1055 (July 10 Low) below which it could extend losses to 1.0992 (July 9 Low) levels.