EURUSD Eyes 1.0800 As Greece Rejects New Bailout Package

The Euro (EUR) fell against the US Dollar (USD) on Monday after the unprecedented Greece referendum as the people of Greece said “NO” to the new bailout package. The technical bias in the long run already remains bearish due to a Lower High in the recent wave on daily chart.

Technical Analysis

As of this writing, the pair is being traded around 1.1040. A support can be noted near 1.0970, the 23.6% fib level ahead of 1.0818, the swing low of the last major dip as demonstrated in the following daily chart.

On the upside, the pair is expected to face a hurdle near 1.1063, the 38.2% fib level ahead of 1.1139, the 50% fib level and then 1.1255, the 61.8% fib level. The technical bias will remain bearish as long as the 1.1434 resistance area is intact.

Greece Referendum

Greek voters have decisively rejected the terms of an international bailout. The final result in the referendum, published by the interior ministry, was 61.3% “No”, against 38.7% who voted “Yes”. This was a historic decision that could cause an exit of the European nation from the Eurozone. Markets reacted sharply towards the referendum and the aftershocks are likely to continue throughout the ongoing week.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair below 1.0800 could be a good option if we get a bullish pin bar or bullish engulfing candle near key support area. Always use proper risk and reward ratios to optimize profitability in forex trading.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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