Euro fell to a one-month low of $1.0955 on Monday

Good morning from Hamburg and welcome to our latest Daily FX Report. Tens of thousands of Greeks rallied on Monday to back their leftwing government's rejection of a tough international bailout after a clash with foreign lenders pushed Greece close to financial chaos and forced a shutdown of its banking system. With a popular referendum on the bailout planned for Sunday, Prime Minister Alexis Tsipras put his own position on the line, saying he would respect the result of the vote but would not lead a government to administer "austerity in perpetuity." "If the Greek people want to have a humiliated prime minister, there are a lot of them out there. It won't be me," he said in an interview on Greek state television as one of the biggest rallies seen in Athens in years was taking place.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

Greece will not pay a 1.6 billon euro loan installment due the International Monetary Fund on Tuesday, a Greek government official told Reuters, after talks between Athens and its creditors broke down over the weekend when Prime Minister Alexis Tsipras called a surprise referendum on the austerity plan. Ratings agency Standard and Poor's cut Greece's sovereign debt rating one notch further into junk levels to CCC-, saying there was a 50 percent probability it would leave the euro zone. U.S. stock futures were up about 0.2 percent in Asia, suggesting that a semblance of stability could return to markets after steep losses in the previous session. In overnight trading on Wall Street, all three major stock indices tumbled, with the Dow Jones industrial average shedding 1.95 percent, the S&P 500 losing 2.09 percent and the Nasdaq Composite dropping 2.4 percent. The euro fell to a one-month low of $1.0955 on Monday and then reversed direction in North American trade as investors exited their euro-short positions, pushing the common currency as high as $1.1279. It was last down about 0.2 percent on the day at $1.1215. Crude futures hit 3-week lows on Monday as Greece shut its banks and imposed capital controls, causing widespread risk aversion, while Iran looked likely to extend nuclear negotiations with the West to export more of its oil into an oversupplied market. U.S. crude closed down $1.30, or 2.2 percent, at $58.33 a barrel, its lowest settlement since June 8. Some analysts said crude prices could weaken further as the Greek situation will probably not be resolved until a referendum this weekend on whether to accept conditions for a bailout.

Daily Technical Analysis

EUR/USD (Daily)

One of the most important currency pairs worldwide is held under control of the bears. It doesn’t seem to be a stable support line, as this pair is highly influenced by economic world data and now especially by the QE program from ECB. The 12-year low around 1.0475 was touched and rebounded. During one year the pair has lost around 7.5 percent. Looking long term some wins might occur.

Support & Resistance (Daily)