The dollar is sharply higher across the board, as the Greek drama has reached levels where more waiting is unsustainable: the Greek banks are really running out of cash, despite the capital controls imposed last week. Last night, in an emergency meeting between German Chancellor, Angela Merkel, and French President, François Hollande, Athens was given 24 hours to offer a new plan to get its economy in order and avoid full collapse.
In the meantime, Alexis Tsipras has made public his contact with Russian President, Vladimir Putin, and their discussion on how the relationship between both countries will develop from here, in an attempt to put further pressure over the institutions to lower their demands.
Despite the resignation of former FM Yanis Varoufakis, and his replacement with a more conservative politician, Euclid Tsakalotos, the European authorities are pretty disappointed with the developments of the negotiations until now, and the call for the referendum, and most are ready to call "game over" on Greece.
View live chart of the EUR/USD
As for the EUR/USD, the pair has accelerated its decline and fell down to its recent lows in the 1.0950 region, with the technical picture presenting a strong bearish momentum according to the 4 hours chart, as the 20 SMA gains bearish slope well above the current price, whilst the technical indicators have resumed their declines and head south well into negative territory. Should the price break below 1.0950, the pair should attempt a test of the 1.0900 region, whilst below this last, 1.0860 comes next, in route to 1.0820, May 27th daily low.
The immediate resistance stands at 1.1000, with a recovery above it probably seeing the pair testing 1.1050, in case of some relief news regarding Greece.
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