The EUR/USD pair has a very slightly positive session on Wednesday as the market took a bit of a breather ahead of today’s important announcement on participation in the Greek bond haircuts. These “voluntary” haircuts will excuse Greece of massive amounts of losses, and this would be Euro positive. That of course is only until other countries demand the same thing. Any pop in this pair will be sold off given enough time.
However, in the interim, the pair will likely sit very still, and be very volatile after the announcement at 3pm EST. The breaking below the 1.30 level lets us know that things are bad and getting worse, and we are selling below that level. A rise above 1.35 sends this pair to 1.40 going forward, but between there – we have noise, and a lot of it. We are flat of this pair unless one of those levels gives way as the Non-Farm Payroll report is Friday as well.
Written by FX Empire