EUR/USD to expect the unexpected


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.


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