Risk aversion reenters with negative news from Greece

By TraderVox.com

The troubles for Euro are far from over. A leader of Laos’ party which is a part of Greek coalition said he would not vote in favor of bailout as it would bind Greece for half a century. Creditors also demanded more measures from Greek. The threat of Greek default in March surfaced again. Euro fell to the low of 1.3154. It has come off the lows and is trading at 1.3180, still down about 0.75%. Now the support lies at 1.3140/50 and 1.3080. The resistance may be seen at 1.3200 and 1.3250.

The sterling pound rose to a daily high of 1.5849 during the European session. But it lost the gains in response to Greek development and formed a low of 1.5736. It is currently trading at 1.5650, down about 0.40%. The support now lies at 1.5735 and below at 1.5700. The resistance may be seen at 1.5800 and above at 1.5850.

The risk aversion is back in the market and it has reflected with US dollar gaining moves across the board. The USD/CHF pair as expected gained the levels and touched 0.9200, high for the day. But it was unable to pierce through and is currently trading at 0.9180, up about 0.70%. The support may be seen at 0.9160 and below at 0.9130. The resistance may be seen at 0.9200 and 0.9250.

The USD/JPY pair gave back the gains of the day and is currently trading marginally in red at 77.62. It is comfortably trading well above 77 levels. The support may be seen at 77.50 and below at 77.30. The resistance may be seen at 77.80 and above at 78.

The Australian dollar continued its fall during the US session as well. A fresh low of 1.0639, 150 pips down from the open, was formed during the US session. It is currently trading at 1.0670, still down more than one percent for the day. The support may be seen at 1.0650 and 1.0600. The resistance may be seen at 1.0700 and 1.0730.

The dollar index is trading comfortably above 79 levels at 79.10. The high for the day so far is 79.29. Some data came from US today. US trade balance came at $ 48.8 billion. The forecasted value was -$ 48.2 billion. Michigan CSI came at 72.5 against the expectation of 74.3. Greek will be voting on a bailout package on Sunday. So this weekend will not be an easy affair for markets.

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