The euro closed gaining 1.3% against USD, 1.8% against NZD, 0.3% against CAD, 0.1% against AUD, and 0.2% against JPY. After the RBNZ's decision to cut its rate and the FOMC meeting, the euro edged higher. The single European currency was muted against the commodity currencies like CAD and AUD.
We expect big changes in Greece this week. As we know, Greece has not made a deal on paper yet. The emergency Eurogroup meeting takes place on Monday. Today's meeting is seen to be Greece's last chance to make a deal with its creditors. The next payment to the IMF is due on June 30.
Weekly upcoming events: The week started with major event at the European summit. Readings for European, French, and German flash manufacturing and services PMI are due. The German Ifo business climate index will be released on Wednesday. Thursday is a day when data on German consumer climate is expected to be published. Money supply data is due on Friday.
Technical view:
EUR/USD- The pair is approaching a month high of 1.1467 and 1.1535. The pair managed to close above 20Wsma for the third consecutive week. Today, the US existing home sales data is due. The negative readings may help euro bulls to reach the level of 1.1440 initially and 1.1530 later. If the European summit has a positive impact on the Greek situation, we expect the levels of 1.1600 and 1.1660 to be reached in a day or two.
Pros: In the four-hour chart, the pair managed to breach the double top formation 1.1380 hit a high of 1.1437. But bulls were unable to close above that double top. The nearest resistance is seen at 1.1440 and 1.1490. In case bulls are unable to close above 1.1535, bears will re-test 1.1200, 1.1100, and 1.1060 this week.
Intraday: Intraday buying is available above 1.1380 with targets at 1.1400, 1.1420, 1.1440, 1.1460, 1.1500, and 1.1520. Support is found at 1.1358, 1.1310, and 1.1290. Selling is available below 1.1280 with targets at 1.1240 and 1.1200. The selling pressure accelerates below 1.1190 towards 1.1150 and 1.1100. Bulls' last hope lies at 1.1060/1.1050.
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