European currency is still under pressure from the situation in Greece. As it became known on Tuesday, municipalities in the country refused to transfer money to the Bank of Greece. Experts believe that this issue can be resolved only when government provides a detailed plan of spending municipal funds. Also, the funds can be transferred to the Bank of Greece if Parliament of the country will oblige municipalities to do so.
According to preliminary data the Bank of Greece shall receive about 2 billion euro; however the heads of the municipal districts opposed the use of the municipal funds to finance the needs of the government as it violates Constitution of the country. According to the latest data, Greece shall pay foreign creditors about 22.5 billion euro in 2015. It is not clear yet whether the country will be able to withstand the trial without declaring a default.
Support and resistance
The nearest resistance level: 1.0996 – 8/8 Murray.
Support level: 1.0925 – 1/8 Murray.
It makes sense to open short positions after breakdown of the level of 1.0925 with protective orders at 1.0950 and the target of 1.0803.