Monday, 29 June 2015
EUR/USD trending down now
Greek banks are closed pending referendum on the most recent creditor proposals. Euro has fallen against the Dollar in consequence.
EUR/USD Support Line S has been breached and Resistance Line R has bent downwards. We can say that EUR/USD is trending downwards.
Greece, however, will not be allowed to leave the Euro. Real negotiations about the Greek economy will now commence. There will be a write-down or long extension of Greek debt and, eventually, resources will be directed towards stimulating (rather than depressing further) the Greek economy.
Essentially the large countries of the EU, particularly Germany, benefit most from the Single Market and Single Currency. To work, there has to be transfer of funds from the centre to the peripheral areas - the original EU idea until recession and Merkel focussed on narrow national goals.