Euro technicals increasingly aligned
In the next day or two the 55-day moving average in EUR/USD will cross above the 100-dma for the first time in nearly a year.
The pair fell more than 3000 pips after the bearish crossover of the two major moving averages and a switch suggests the bounce in the pair has more room to run.
EURUSD daily
The cloud hanging over the euro is Greece but at this point, it seems as though even if Greece defaults, instills capital controls or is even booted out of the Eurozone that it isn't necessarily bad news for the euro. If there is no contagion, the feeling is that the remainder of the Eurozone will be stronger and the future may be brighter.
There may be some kind of knee-jerk lower on a default but it could be quickly bought.
