EUR/USD to expect the unexpected

FXMR

FX Market Report analysts are very skeptical about Greece’s permanence in the Eurozone, accepting the “dictated” terms and spend many years under harsh austerity. “At what point are the bailout conditions so unpalatable that it becomes worthwhile to not take the money but default instead? We suspect that this is the outcome really being sought by the core Norhern block”, writes Gavin Grier-Rees.

A signed agreement should take the EUR/USD to further gains, but the outlook is very dark as Greece might default anyway: “This is through the 1.3240‐45 resistance level and targets 1.3435 (50% of the Q4 2011 down move). There will be some long‐term investors who will be waiting to see the ink on a Greek agreement before stocking up on euros. For us they may well be paying the top…”, adds Grier-Rees.

First supports would be at 1.3215, 1.3150 and 1.3050.

Advertisements
Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: