Euro Nosedived On Uncertainties over Greece's Future in Euro Zone

Key Highlights

• There was a major even this weekend in Greece, as the Greek government rejected Euro group proposal, which ignited a downside pressure on the Euro.

• Euro tumbled against a basket of currencies, including the US Dollar, Swiss Franc and the British Pound.

• There are gaps for almost each Euro pair, which says all about the amount of pressure on the shared currency.

• Today, the German consumer price index will be released by the Statistiches Bundesamt Deutschland, which is expected to increase by 0.1% in June 2015.

EURUSD Technical Analysis

The Euro suffered heavy losses during the Asian session, as the Greek government rejected Euro group proposal, which poses a great threat. The EURUSD opened the week with a major gap lower and traded as low as 1.0955 where there were buyers. The pair is currently correcting higher, but finding sellers around the 23.6% Fib retracement level of the last leg from the 1.1218 high to 1.0955 low.

It would be very difficult for the Euro buyers to take the price higher in the short term. There was an expanding triangle formed on the 4-hour chart, which was broken recently to clear the way for more downsides. Moreover, the pair is below the 100 and 200 simple moving averages, which may perhaps act as a resistance later. Let us see how far the pair can correct, as the next level of selling interest could be around the 38.2% Fib retracement level, followed by the 50% Fib level.

On the downside, the recent low of 1.0955 is a support area, followed by the 1.0920 level. Any more losses might depend on how the things shape up in the Euro zone.