Wednesday, February 4, 2015

$EUR/USD falls after ECB announcement on Greece

$EUR/USD lost the 1.1400 mark and made fresh lows for the day after the ECB announced it is lifting the waiver on using Greek government debt as collateral. 

The waiver allowed Greek debt to be used as collateral despite the fact that they did not fulfil minimum credit rating requirements. The ECB said suspension, which applies as of Feb 11, is in line with existing Eurosystem rules, since “it is currently not possible to assume a successful conclusion of the programme review” for the Hellenic Republic. 

$EUR/USD came under pressure and dropped to a low of 1.1378 on the news. At time of writing, the pair is trading at 1.1385, 0.81% below its opening price.

$EUR/USD technical levels

In terms of technical levels, $EUR/USD could find next supports at 1.1329 (10-day SMA), 1.1312 (Feb 3 low) and 1.1300 (psychological level). On the other hand, resistances line up at 1.1484 (daily high), 1.1500 (psychological level) and 1.1530/33 (21-day SMA/Feb 3 high).