EUR/USD guided by Greek developments – TDS

FXStreet (Barcelona) - EUR bears might come into play if Greece and its creditors fail to arrive at a solution this week, especially if US retail sales data climbs higher, according to FX Strategists at TD Securities.

Key Quotes

“Markets remain characterized by low liquidity and a lack of conviction so far today, keeping EURUSD trading inside last Friday’s range. EURUSD’s turn lower Friday suggests that the recent rebound in the single currency may have run its course, at least from a technical perspective (price action has formed a strong, negative signal against Thursday’s intraday high).”

“But investors may not lean too hard on the EUR while Greek uncertainty prevails. If a compromise remains likely, it also remains difficult to achieve.”

“Investors may start to lean a little harder on the EUR’s downside later this week of progress is lacking and if US data (retail sales) are strong. While Greece remains unresolved, we think scope for a deeper EUR rebound is limited.”

“Intraday, look for sub-1.11 levels to push EURUSD a little lower though we expect firm support in the mid 1.10 area at least while investors await developments on Greece.”

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