Forex Flash: EUR/USD sell on rallies – Rabobank (Barcelona) - The single currency has quickly left behind the psychological mark of 1.2800 on Monday, boosted by news that the EU finmin meeting tomorrow would clear the path for Greece to get a €44 billion loan. Market has reacted accordingly, spiking 1.2820 although at the moment the cross is navigating lower levels around 1.2812

With the focus on tomorrow’s meeting, Strategist Jane Foley at Rabobank, argues “It is hoped that the officials will be in a position to sign off on the next tranche of Greece’s bail-out money. This may be worthy of another small boost to risk appetite this week. However, it is clear that the factions of the troika have differing opinions on the sustainability of Greek debt over the longer-term and this will surely be an issue that will return to the fore again and again over the coming years”.

The expert believes there is potential for another upside in EUR/USD, although “we expect that this will limited. We would favour selling rallies towards the 200 day sma at EUR/USD 1.2808".