The mentioned bear pressure seen in the EUR/USD pair comes amid another round of hits to sentiment stemming from the Greek political situation, with Greek PM Evangelos Venizelos on Saturday failing to form a government.
Greece's political landscape is in disarray after voters rejected the only parties backing a rescue plan tied to spending cuts; this leaves the nation with not enough seats to form a government to secure the next tranche of financial aid. Without the aid, the debt-stricken country, again, risks bankruptcy in a matter of weeks and a potential exit from the euro zone.
Also weighing on EUR sentiment are Germany’s state election results, which were unsupportive of Merkel’s party. The influential German magazine, Der Spiegel, which calls for a Greek euro exit, is fueling EUR-negative speculation.
EUR/USD has traded as low as 1.2885 so far this Monday in Asia, with immediate support at 1.2877 (13 Jan high), then 1.2844 (12 Jan high). To the upside, resistance lies at 1.2910 (9 May low), then at 1.2945 (14 Dec low).
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