EUR/USD has reacted to political news this morning by rising sharply, testing the 61.8% retrace of the 1.2748 – 1.2408 fall. This rise is viewed as corrective while under the 1.2748 high.
Countless bailout funds have been initiated since the emergence of problems in Greece, yet we still find ourselves in the position we have today. We are thus skeptical about the long term success of any such bailout tactics.
Longer-term an eventual return to 1.2288 and lower is expected which would target the support of a multi-month falling channel somewhere in the region of 1.0800.