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EUR/USD slides as Greek debt talks fail

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EUR/USD retreated on Monday after talks between Greece and Eurozone finance ministers over a new financing arrangement for Greece broke down abruptly. Nevertheless the rate hit support at 1.1315 (S1) and rebounded somewhat. As long as EURUSD is trading in a sideways mode between the key support of 1.1260 (S2) and the resistance of 1.1540 (R2), I would consider the near-term bias to be neutral. As far as the broader trend is concerned, I believe that the pair is still in a downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. A clear dip below 1.1260 (S2) is the move that would shift the bias back to the downside and perhaps pull the trigger for another test at 1.1100 (S3).

• Support: 1.1315 (S1), 1.1260 (S2), 1.1100 (S3).

• Resistance: 1.1450 (R1), 1.1540 (R2), 1.1650 (R3).

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