The European currency is slowly growing against the USD and is currently traded at the level of 1.1350. It seems that investors got used to the problems in Greece and stopped taking notice of them. However, situation in Greece bears huge risks for the financial system of EU. The confrontation of the Greek government with the creditors is escalating. Some days ago the ruling party SYRIZ announced the intention to reinstate the fired employees in the public sector. Recall that one of the terms for getting a loan is to reduce the number of employees in order to decrease burden on the national budget. Now, it is planned to return to work 13-15 thousand of employees; however it is not clear what funds will be used to paying salaries to them. By restoring workplaces for people the authorities want to reduce social tension and increase consumer demand; however it is unknown whether the creditors will approve this decision.
Support and resistance
The nearest resistance level: 1.1475 – 6/8 Murray level.
Support level: 1.1230– 4/8 Murray level.
It is recommended to open short positions after breakdown of the level of 1.1300 with protective orders at 1.1350 and the target of 1.1155