The Greek people in a referendum earlier this month voted No to austerity measures proposed by the IMF. Unfortunately, the Prime Minister Alexi Tsipras was forced to accept the proposals during a meeting with IMF and EU representatives. This is contrary to the wishes of the Greek majority and the parliaments this morning also voted yes to allow the austerity measures in other to get the bail-out.
Greeks without any doubt were disappointed at this move and this was seen in the massive demonstration at the parliament square overnight. What this means is an increase in VAT excess of 24%, increase in retirement age above 67, and privatisation of the state owned Electricity Company. These were all the major proposals which Greeks voted against.
EURUSD has been little unchanged from the bearish Trend over the past couple of weeks. There was rally to a strong support at 1.12 level. This was a strong level between buyers and seller. The bears took control of the market and pushed Eurusd back to below 1.11. Yesterday, the 1.10 support level was also lost to the bears and now we trade below the 1.09 support level. The next support level to watch is 1.0865. If the bears take charge, the next support to watch is 1.0750.
We need to watch how the market reacts to ECB press conference and Janet Yellen speech later on today.