EUR/USD May Fall Further amid a “No” Referendum Result in Greece

Earlier today, the official Greek referendum results came out with an overwhelming majority towards the NO vote, which means that the majority of the voters in Greece selected to reject the European terms of additional bailout fund. Around 61% of the votes were cast in favor of No.

As a result, the Euro price opened much lower than its closing rate on Friday against other major currencies. The EUR/USD in particular had a 100 pips bearish gap this morning during the Asian market opening.

The International Monetary Fund (IMF) and other European lender states to Greece had given Greece terms regarding strict austerity measures which the leftist Government of Greece refused to accept.

However, Greece had difficulty managing its finances without additional bailout funds from its lenders and had to close down its banks and ATMs last week. The country has already defaulted its $1.7 billion loan repayment installments to the IMF on June 30. Sigmar Gabriel, the German Deputy Chancellor, told BBC that under the circumstances, any new negotiations with the Greek government would be “difficult to imagine.”

EURUSD

Last week, the EUR/USD had another bearish opening gap during Monday market openings. Both times, the price failed to penetrate the important psychological support around 1.0950.

If the EUR/USD price falls below the 1.0950 level, it may trigger additional bears in the binary options market and may trigger a bearish move towards the uptrend line around 1.0600.

Under the circumstances, it is recommended that traders wait for the EUR/USD price to close below the 1.0950 level before placing any PUT orders with their binary options brokers.

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and write on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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