1 Jul 2015
EUR/USD eases to 1.1120, Tsipras letter-led spike fades
FXStreet (Mumbai) - The European currency took a breather from Tsipras letter–led spike to 1.1150 levels versus the US dollar, as traders digest the latest Greek government acceptance to conditions ahead of Sunday referendum. EUR/USD, although remains pressured and returned to 1.1120/30 arena on the back of broad based US dollar strength before US data releases.
EUR/USD steadies below 1.1150
The EUR/USD pair trades -0.17% at 1.1126, inching close towards 1.1100 levels. The major gave back gains and fell back in red as traders mull over Tsipras letter which spurred some volatility across the fx space.
As per the latest reports, Greek PM Alexis Tsipras sent a letter to the heads of the European Commission (EC), International Monetary Fund (IMF) and European Central Bank (ECB) requesting an extension of Greece's bailout program that expired on Tuesday June, 30 and proposed a new € 29.1 billion rescue package.
According to the letter, the Greek government will accept all the reforms of his country's VAT system with a special 30% discount for Greek islands. Many of the island are in very remote regions and can be supplied only with difficulties.
Further, Euro zone finance ministers are due to discuss Greece's new proposal in a teleconference session on Wednesday evening.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1194 (June 2 High) levels, above which gains could be extended to 1.1221 (June 25 High) levels. On the flip side, support is seen at 1.1100 below which it could extend losses to 1.1080 (June 8 Low) levels.
EUR/USD steadies below 1.1150
The EUR/USD pair trades -0.17% at 1.1126, inching close towards 1.1100 levels. The major gave back gains and fell back in red as traders mull over Tsipras letter which spurred some volatility across the fx space.
As per the latest reports, Greek PM Alexis Tsipras sent a letter to the heads of the European Commission (EC), International Monetary Fund (IMF) and European Central Bank (ECB) requesting an extension of Greece's bailout program that expired on Tuesday June, 30 and proposed a new € 29.1 billion rescue package.
According to the letter, the Greek government will accept all the reforms of his country's VAT system with a special 30% discount for Greek islands. Many of the island are in very remote regions and can be supplied only with difficulties.
Further, Euro zone finance ministers are due to discuss Greece's new proposal in a teleconference session on Wednesday evening.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1194 (June 2 High) levels, above which gains could be extended to 1.1221 (June 25 High) levels. On the flip side, support is seen at 1.1100 below which it could extend losses to 1.1080 (June 8 Low) levels.