The EUR/USD pair fell hard again during the Tuesday session as contagion fear continues to grip the markets when it comes to dealing with the Euro. The Greek Prime Minister also has mentioned that there is going to be a referendum to vote on the EU bailout package in order to accept or defeat the package and austerity measures. The PM believes he can convince rioters and demonstrators that the harsh measures are prudent. The ability for him to do that is likely a pipedream, and the EUR/USD traded as such.
The pair smashed through a few different handles during the session, and even got as low as 1.36 at the bottom, before finding a bounce. The pair is most certainly broken, and going long is almost impossible at this point. We recommend selling rallies until we can close on the daily chart above the 1.40 level, which we see as crucial.
Written by FX Empire