According to the forecast, today there was a decline on the EUR / USD pair. At the moment not established anything new on aid or bankruptcy of Greece. The whole situation introduces nervousness on the markets thus escape towards safe currencies such as the US dollar . Today there was a break important support at 1.10 and then the market had settled zone support levels at 1,0954-70. Minimum recorded much lower at 1.0916 which confirms the weakness of the single currency.
A few words about Greece:
At today's meeting of the Eurogroup Greeks did not put forward any new proposals. Germany does not see opportunities for further dialogue, without decisive changes in the new program improvement. The situation is difficult and can lead to Greece's exit from the Euro zone. In the event of submission of the EU towards Greece next in line for the money of the European Union will be Spain and Portugal.
The economic calendar for Wednesday:
20:00 minutes of the FOMC meeting;
Tomorrow's calendar is empty but the market certainly will keep track of the records of the FOMC meeting. At the moment, we know that the data from the US, which we received recently were good but not sensational. This could cool the enthusiasm of members Fed to raise interest rates in the autumn in the US. At the moment, the market expects a rate hike at the end of the year or the beginning of 2016 years. If we receive information about the possibility of introducing higher rates earlier this dollar strengthened.
The forecast for Wednesday:
Today, it dominated the world market supply, which broke the important support at 1.10 and then the market had settled zone support levels at 1,0954-70. and supports the continued declines. In my opinion, the road was opened towards the levels of 1 June and 27 May. The supply should maintain the strength and lead to declines in the direction of today's low of 1.0916. The next targets will be the levels 1,0880-90 and 1.0820. (An important resistance is the level of 1,0954-70 and 1.10. (In this area should outweigh the supply side, a large part of the players will certainly be here to open short positions)).
The downward variant is in my opinion the preferred option but be careful because the rumors or the fixing of aid for Greece may be associated with strong movements. Already, at present is at 90% and this should be taken into account in its strategy.
Note: Please note that in case of positive news on Greece comes to strong increases but it is unlikely at the moment. In this case, the targets should be the level of 1.1120 and a 1,12-1,1240
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