No value trade in EUR/USD longs – FXMR

With all eyes on Europe and its press conferences, ECB Mario Draghi’s first and another one after the Eurogroup meets, clarifications about the Greek debt writedowns are due.

FX Market Report analysts remain skeptical about the whole thing: “For us the peripheral problems are ‘structural’ and cannot be solved by throwing good money after bad. The ongoing policies of austerity are just compounding the down turns and making debt servicing impossible, let alone debt repayment”, says Gavin Grier-Rees.

Grier-Rees also points to a very high price in the EUR/USD (700 points above 2012 low) when taking in account the risks of a downfall: “. In other words buying euros at current levels risks running into the recession that is being caused by austerity policies.

On the charts the trends continue higher but we are minded to wait until after news releases to play the short side”.
Resistance would be found at 1.3435 and support for the downside might appear at 1.3245, 1.3150‐55, and 1.3070‐75

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