The shared currency was heavily offered versus the US dollar in the European morning, knocking-off EUR/USD below 1.1150 levels. The decline in EUR/JPY cross exacerbated the downside in the European currency, dragging it deeper in to red.
EUR/USD declines from 1.1170
The EUR/USD pair trades -0.86% lower at fresh session lows of 1.1138, quickly sliding nearly 20 pips. The major accelerates losses mainly driven by over a percent slump in EUR/JPY cross as the Greek debt crisis is weighing heavily on the 19-nation bloc currency.
It's widely expected that the debt-ridden country will not repay its $1.7 billion loan to the International Monetary Fund today. Political and economic turmoil persists after capital controls were imposed on Monday, leaving account holders dependent on the maximum withdrawal of €60 each day.
While markets also continue to digest mixed German retail sales and unemployment data which also keeps the European currency pressured amid persistent broad based US dollar strength.
Markets will remain glued to Greece updates while inflation numbers will be released for the euro zone as a whole and markets estimate a slight decline to 0.2% from the 0.3% growth in May. Also, a set of US economic releases will be closely watched for further momentum.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1219 (Today’s High) levels, above which gains could be extended to 1.1279 (June 29 High) levels. On the flip side, support is seen at 1.1154 (June 24 Low) below which it could extend losses to 1.1129 (June 26 Low) levels.