EUR/USD – Little Change as Greece Headed to Elections

It’s the final trading week of 2014 and predictably, the currency markets are in slow gear. EUR/USD is trading just below the 1.22 line on Monday, unchanged from last week and close to 2-year lows. There are no Eurozone or US releases on Monday. However, we could see some movement from the pair in response to the announcement from Athens that the Greek prime minister has called elections for the end of January.

With no economic releases on Monday, today’s lead event is the political deadlock in Greece. Earlier on Monday, Greece lawmakers failed to elect a new president, so a general election has now been scheduled for January 25. Greece agreed to a EUR 240 billion program with the EU, ECB and IMF, but the austerity measures the country was forced to implement have proven deeply unpopular, and one major party has promised to rescind the agreement. The political uncertainty in this latest Greek saga could chill the markets and hurt the shaky euro.

EUR/USD for Monday, December 29, 2014

EUR/USD December 29 at 11:05 GMT

EUR/USD 1.2190 H: 1.2221 L: 1.2169

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1926 1.2042 1.2143 1.2286 1.2407 1.2518

 

  • EUR/USD is showing little movement, as the pair stays close to the 1.22 line.
  • 1.2143 is an immediate support level.
  • 1.2286 is a strong resistance line.
  • Current range: 1.2143 to 1.2286

Further levels in both directions:

  • Below: 1.2143, 1.2042, 119.26 and 118.02
  • Above: 1.2286, 1.2407, 1.2518, 1.2688 and 1.2806

 

OANDA’s Open Positions Ratio

EUR/USD ratio is showing little change on Monday, continuing the trend we saw last week. This is consistent with the pair’s limited movement, as the euro has shown very small gains. The ratio has a majority of long positions, indicative of trader bias towards the euro moving to higher ground.

EUR/USD Fundamentals

* There are no Eurozone or US releases on Monday.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.