Current trend

The main factor behind dynamics of the EUR/USD pair remains Greek crisis. After few weeks of unsuccessful attempts to reach an agreement, today the leaders of the eurozone managed to strike a deal with Greece. Assuming that Greece’s parliament approves the draft, Athens are going to receive 86 billion euro within next 3 years and the country stays in eurozone.

The Euro, on the other hand, has not shown any positive dynamics following the deal. The pair is now falling and reached 1.1070.

The factors, negatively affecting the Euro remain the same: the crisis in Greece continues, the eurozone is going to keep the country afloat with loans, and key economic indicators for the eurozone keep showing poor results.

Today’s economic calendar does not have any important publications that can affect the direction of the pair’s movement.

Support and resistance

The pair is likely to continue falling amid strengthening USD.

In the short-run, the pair is going to reach the bottom MA of Bollinger Bands and local lows at 1.0950, the breakdown of which would allow the pair to continue falling towards 1.0825, 1.0690, 1.0545, 1.0480. The pair is also likely to reach historical lows in August.

Support levels: 1.0950, 1.0825, 1.0690, 1.0545, 1.0480, 1.0400, 1.0370.

Resistance levels: 1.1175, 1.1280, 1.1430, 1.1510, 1.1675.

Trading tips

Open short positions from the current levels with stop-loss at 1.1300. Short-term target: 1.0950. Long-term targets: 1.0545, 1.0480.

EUR/USD: euro is going to fall

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