EUR/USD is in the midst of short-squeeze this morning as speculation of a rescue package for Greece and efforts at pension reform by the debt-laden country are announced. The pension reforms are key as they would ban early retirements and raise the retirement age.
Central banks have been selling into strength already after buying heavily on the 1.36-handle. Despite those sales, we’ve overcome the 38.2$ retracement of the drop from 1.4027 to 1.3585 at the 1.3754 level. 1.3806 is the 50% retracement of that same drop.
Look for bids on pullbacks to the 1.3715 area near-term.
