Wednesday, 8 July 2015
EUR/USD bottoming out
As Greece works towards an accommodation with Europe, the effect of the crisis on EUR/USD is lessening. The bottom is taking on a parabola shape, as is the top.
Will the EUR/USD stabilise at a value within the flattened bottom of the parabola, or will it start to rise? This depends on the market's belief in an American interest rate rise.
Recent FED statements tend to indicate postponement and minimisation. If this is what is believed, we should see a rise in the Euro when the present instance of the Greek affair is resolved - until an interest rate hike is seen to be imminent again.