Euro – Greece = Good

by Alexander Chepurko
(HiWayFX)

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.

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Forex trading articles - general.

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.