Forex: EUR/USD sellers are now in control - 2ndSkies (Barcelona) - EUR/USD head fake off the 1.30 big round number has shifted risks to the downside going into Wednesday's London session. The bearish gyration portrays the reservations of the market linked to the Greek deal, with special focus on its debt-buyback operation, which is likely to see Eurozone states facing losses on their Greek debt.

From the WSJ: "Greece needs €9.6 billion to offer to private-sector Greek government bond-holders to entice them into giving up their holdings, but one big question is the source of the €9.6 billion. German finance minister Wolfgang Schäuble said Tuesday that there would be no new loans for the buyback. He said that Greece could raise the funds from the combination reduced interest rates on existing loans, payments to Greece of profits made from the European Central Bank’s bond-buying program as well as through short-term loans, or treasury bills – pretty much the same steps that will be taken to reduce the overall debt load."

The EUR/USD ended trading on Tuesday printing a 90-pips bearish engulfing bar, "its first sound rejection off the key level" says Chris Capre, Founder at 2ndSkies, suggesting that short term talking, "the sellers are now in control." Chris tips intraday support now resides at 1.2888, decent 'value-area' for longs to reinstate their bullish views. According to Chris, sellers "can look for intraday corrective pullbacks towards 1.3000 for potential shorts."