The leaders held an exchange of views on Greece and clarified the positions and the situation in the ongoing talks between the Greek authorities and the institutions (the European Commission, the European Central Bank, and the International Monetary Fund).
The President of the Euro Summit Donald Tusk said the latest proposals for the reforms plan by the Greek authorities was a positive step forward, but noted that the proposals require further assessment by the institutions.
Greece is expected to submit a comprehensive reforms plan to unlock further disbursement of financial assistance according to the agreement of 20 February 2015. It presented its latest proposal on 22 June 2015.
President Tusk said: work now must proceed swiftly in the Eurogroup. Prime Minister Tsipras and the institutions will work together now so that the Eurogroup can achieve a result on Wednesday evening, which can be presented on Thursday morning.
Market Impact :
The EURUSD pair trades around critical resistance on the weekly and monthly time frame at the 1.1466 levels. On a daily time frame, 2 weeks ago. The pair printed resistance at the 1.1385 levels. Last week. It spiked above 1.1385 levels, topped at the 1.1435 levels and closed lower below 1.1385 levels.
A the moment. Momentum indicators show that bullish momentum fading away. Immediate support comes at the 1.1329 levels. A clear break-daily closing- below 1.1329 will bring a corrective pullback towards main support at the 1.1205 levels. A rebound is likely. However; a cut through the 1.1205 levels will suggest short term topping at the 1.1435 levels. And open the 1.1048 levels, further down. Support comes at the 1.0958 levels.
On the upside, resistance comes at the 1.1385/1.1435 levels. A break will target 1.1533 first, Above 1.1533. The risk will shift to the 1.1679 levels.
At the moment of writing, EURUSD slipped below the key support 1.1329, It around 1.1270, stability below 1.1329 will increase the risk of a return to the key support 1.1205 !!!
In the upcoming hours, It depends on German Manufacturing PMI data, later on, the day, the focus will be shifted on US Durable Goods data. Will it continue falling towards 1.11205, or it will rebound above 1.1329 !!
Note a failure to hold above the 1.1435 levels on a weekly closing basis, followed by a weekly closing below 1.1188 levels, If seen, It will target 1.0818 first where a cut will turn the focus on the 1.0520/1.0461 levels…