The Sunday session has opened up a gap trend (1.0995) as a consequence of information that sprang from Greece. Minimum seen at 1.0970, and like a week earlier demand led to the closure gap. Maximum dropped out at the level of 1.1096. Currently, the currency pair is trading at 1.1050 indicates weakness in demand.
A few words about Greece and the referendum
The greater part of the Greeks (61.31%) voted for NO, which is tantamount to a rejection of its self-imposed reforms of the European Union. The result is a surprise for the markets but above all a great shock for the Germans, who for the last few years quite firmly dictate their conditions to the Greeks. "Domino" is package elaboration and nobody currently knows what will be the effects of decisions Greeks. At the beginning resigned Greek Finance Minister - Janis Warufakis. Negotiations will have to start from scratch and now we know that 85% of Germans are opposed to aid. The results of the referendum is support for the current work of the Greek government but as you know, none of the parties will not forgive. The consequence of such actions could be a Greek exit from the euro zone or even leave the European Union.
Economic Calendar for Tuesday:
8:00 EUR German Industrial Production
12:00 EUR Euro Group meeting
14:30 USD Trade Balance
18:00 EUR Euro zone leaders meeting
Forecast for Tuesday:
The currency pair is still under pressure and tomorrow's market can ignore the readings. Tomorrow, another meeting of the Eurogroup on Greece and the attempt to find a compromise between Greece and the EU.
Technically looking at the situation in the EUR / USD pair, we can conclude that the euro is weak and the strong is 1,11-1,1120. It was not until his defeat may lead to some significant increases in the levels of around 1.12 and 1.1240. Assuming that the Greek issue is not resolved, the more likely it seems the next move downwards. In this case, there should be a break through support at 1.10. Then the next goal will be to overcome aids zone between 1,0954-1,097. If the last minimums are defeated it will open the way to further declines in around 1.0820.
The downward variant seems more likely but keep in mind that all rumors about Greece may introduce confusion in the market. On the currency pair there is a large variation at the level of 77%, therefore, be careful and take this into account in its strategy.