EUR/USDÂ does not enjoy the weakness of US indicators anymore. It now feels the worries about the situation in Greece, and is down around 80 pips in the new week, erasing previous gains.
Can it extend the falls and go deeper in the range?
Negotiations between Greece and its European partners / creditors has intensified according to sources, and there’s reason for worry. Payments due to the IMF, which had its meetings in Washington are due, and so are the state’s normal payments for salaries and pensions.
A developed country has never asked for an extension of payments to the IMF and that would be a precedent. However, there were already reports about having Greece default and stay in the euro-zone.
The meetings in Riga on Friday are supposed to see a conclusion of the talks, but May 11th seems to the new “deadline†The European Union’s deadlines are somewhat flexible.
While many say that the euro-zone can ring-fence a Grexit and remain strong, the woes certainly impact the common currency. Investors know that once the euro is reversible for one country, and it doesn’t matter which, the same thing can happen elsewhere. It’s a path nobody wants to walk through.
EUR/USD has support at 1.0710, followed by 1.0670 and 1.0615. Resistance awaits at the round 1.08 level.
More: USD Index, EUR/USD: Trending Or Turning? – Goldman Sachs
