Time is running out for Greece

<p>EUR/USD Range: 1.3052-1.3144 Support: 1.3000 Resistance: 1.3200 The single currency gapped lower on the open in Sydney after strong US unemployment data on Friday and […]</p>

EUR/USD

Range: 1.3052-1.3144
Support: 1.3000
Resistance: 1.3200
The single currency gapped lower on the open in Sydney after strong US unemployment data on Friday and a lack of progress on the Greece situation. A solution needs to be in place by midday today but with the market trying to establish what ‘soon‘ actually means in Greece, I doubt a deal will be in place by the close of today. I’m now starting to think that with the 1.3000 support level holding, the market has pretty much priced in a Greek default and a eurozone exit, so if we do get a positive result from Greece (big if) the topside will be in danger of breaking with the market still running short positions.

GBP/USD
Range: 1.5763 – 1.5823
Support:1.5700
Resistance: 1.5900
Sterling continues to trade with a bid tone despite the dollar’s bid tone within the G10 space, with weekend press pretty much guaranteeing that the BoE will announce another £50 billion of QE when they meet on Thursday. The recent demand for sterling has come from asset purchase demand. EUR/GBP has taken a lot of strain as we approach technical support at 0.8275, with a close below suggesting a target at 0.8150.

USD/JPY
Range: 76.48-76.80
Support: 76.30
Resistance: 77.30
USD/JPY traded off the 76.00 level, with a stronger US jobs report on Friday but which saw good demand for the pair. As we approach the 76.80-77.00 level, Japanese exporters look to fade the move. For me this pair will continue to be driven by the cross market and US yields as the debate on low US rates continues with US data of late questioning the Fed’s late 2014 stance.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.