EUR/USD dips below 50-DMA, clocks four-day low
|EUR/USD dipped below 50-DMA to clock a four-day low of 1.0585 as markets continue to offer the common currency in response to Greek crisis and heightened political uncertainty in France.
Greece needs to implement reforms
Euro zone finance ministers poured cold water on Monday on a quick agreement that would unlock further aid payments to Greece. However, both parties did agree to continue discussions in the coming days.
Creditors are demanding that Greece institute tax, pension and labour reforms before they will sign off on an agreement.
France-German yield spread continues to widen
Meanwhile, the French Presidential election is now a four-way race up for grabs. In response to the heightened political uncertainty, the France-German 10-year yield spread widened to 78 basis points on Monday.
Politics could continue to dominate economics today. Still, the preliminary PMI readings due for release across the Eurozone are worth a watch, especially for clues regarding build up of inflationary pressures.
EUR/USD Technical Levels
The spot was last seen trading around 1.0590. A lift above 50-DMA of 1.06 could yield a re-test of 1.0623 (10-DMA), above which a major hurdle is noted at 1.0677 (Feb 17 high). On the downside, breakdown of support at 1.0561 (Feb 14 low) would open doors for a sell-off to 1.0521 (Feb low) and to 1.05 (zero figure) levels.
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