Daily Price Action

EURUSD Still Fighting Off the Bears


As you know by now, EURUSD suffered a major gap down at the open this week to the tune of 165 pips. This came on the heels of the announcement that the Greek banks would close on Monday and remain closed until July 6th.

Of course this caused many traders to become excited at the idea that we may be at the brink of another major leg down. Parity, anyone?

However yesterday’s price action showed a complete disregard for any bearish intentions. Instead of crashing lower at the open, the pair rallied past last week’s close and gained an additional 100 pips before running out of gas; an impressive 325 pip range.

Apparently nobody told market participants that the Euro is supposed to drop in response to a constant flow of dismal news out of Europe. Or could a “Grexit” be positive for the Euro, even in the near-term?

The mid to long-term view of a Greek exit from the Euro has always had a positive tilt, but could the near-term prove bullish as well? It’s anyone’s guess at this point, but as always, the technicals tell the real story of how market participants are taking the current mix of news.

Note: Be extremely careful trading the Euro over the next few weeks. Taking half-sized positions or even staying on the sidelines isn’t a bad idea.

Summary: The 1.1150 level should act as immediate support going forward while 1.1280 is acting as resistance. A break of 1.1280 would expose the next resistance level at 1.1450 while a break of the 1.1150 handle would see channel support come into play.

EURUSD key levels in focus on the daily time frame

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