by Alexander Chepurko
Euro – Greece = Good
05/28/2015 - 23:00
June 5 is the day we find out whether or not Greece defaults and whether or not it leaves the Eurozone. In the long run, the paradoxical result may be a higher EUR/USD if Greece is taken out of the Euro equation.
We would like to take this opportunity to warn clients that even though the knee-jerk reaction of a Greek default and Euro exit would be a much lower EUR/USD, such a move should be faded. This is because a Euro without Greece takes a lot of the cheapness out of the Euro, without Greece we are left with relatively strong economies and a more or less stable future for the Eurozone because there are no other countries in the Eurozone at risk of being anywhere near a default and leaving the Eurozone.
Whatever happens on June 5 could very well turn out to be a sell-the-rumour and buy-the-fact scenario as we have seen many times during the 5 year long Greek debt tragedy.
The main level for bias continues to be the bull/bear zone at 1.1025 – 1.1072. Below that a decent support to buy into is 1.0802 – 1.0711. Make sure to see our latest trading plan for EUR/USD.
Join in and write your own page! It's easy to do. How? Simply click here to return to Forex trading articles - general.