EURUSD: Euro continues printing new lows vs the greenback
The Euro started new trading week with a drop to 11-year lows against the greenback as the anti-austerity party won Sunday’s elections in Greece.
Why Greeks’ choice to elect the anti-austerity party Syriza matter to the Euro? Well, its party leader Mr. Alexis Tsipras vowed to renegotiate the terms of the Greece’s bailout package received from Troika over the last few years and reverse some of the measures imposed. Although Greece is one of the smallest members of the Euroland it surely will test the model of the EU. As if those negotiations will go ahead with a positive for Greece outcome, then markets could expect similar actions in Portugal, Ireland and Cyprus.
Technically speaking, the pair continues to attract sellers on pullbacks. After making a lower low (1.1097), the pair is currently traded at a lower high (1.1270). Chances are that not breaking 1.1290 would see the pair making a new lower low at around 1.1050 and later targeting weekly support1 at 1.0985. On the other side, a break of 1.1290 could see the pair advancing to 1.1332 – a pivot point for this week.
The Euro started new trading week with a drop to 11-year lows against the greenback as the anti-austerity party won Sunday’s elections in Greece.
Why Greeks’ choice to elect the anti-austerity party Syriza matter to the Euro? Well, its party leader Mr. Alexis Tsipras vowed to renegotiate the terms of the Greece’s bailout package received from Troika over the last few years and reverse some of the measures imposed. Although Greece is one of the smallest members of the Euroland it surely will test the model of the EU. As if those negotiations will go ahead with a positive for Greece outcome, then markets could expect similar actions in Portugal, Ireland and Cyprus.
Technically speaking, the pair continues to attract sellers on pullbacks. After making a lower low (1.1097), the pair is currently traded at a lower high (1.1270). Chances are that not breaking 1.1290 would see the pair making a new lower low at around 1.1050 and later targeting weekly support1 at 1.0985. On the other side, a break of 1.1290 could see the pair advancing to 1.1332 – a pivot point for this week.
