Technical Analysis EUR/USD for 6/30/15

The EUR/USD whipsawed traders on Monday, and will likely continue to experience extreme volatility in the wake of failed negotiations between Greece and its creditors.  Greece is headed to a referendum on Sunday July 5, 2015, that will hold the key to whether Greece will stay within the European Union.

Early in the Asian trading session the EUR/USD gapped lower pushing through trend line support near an upward sloping trend line that connects the lows in April to the lows in May.  After bouncing near 1.0950, the exchange rate soared on strong momentum riffling through the 50-day moving average at 1.1150, but was unable to close above the 20-day moving average at 1.1250, which is now seen as short term resistance. 

Monday’s outside day price action where the low is lower than the prior day’s low by the close and higher are higher than the prior day’s close and high, generates a bullish outlook to the currency pair.  The 3-big figure range in the currency pair is one of the largest seen on the EUR/USD in 2015.