Yet another meeting focusing Greece’s debt situation is to take place in Brussels during today. Eurozone ministers will continue the discussion on the situation in Greece, considering the upcoming expiry of Greece’s current economic stimulus programmer.
If no results to Greece’s financial problems are produced, there is a serious concern that Greece will be headed for a crunch that would force it out of the euro zone. Despite claims that leaving the Eurozone would be better for the Greek people, Mario Draghi, President of ECB refused to discuss the possibility of Greece leaving the single currency. The ministers will also discuss the economic situation in the euro land and will look into EU Commission’s winter forecast, which was published in the beginning of February as well as ongoing economic adjustment programs in Portugal and Cyprus.
As the meeting begins at 2 PM GMT (9 AM ET), it is not clear what time there will be any official announcements from the meeting but it is highly likely that this will move markets.
Technically speaking, EURUSD is traded in a 200 pip consolidation zone for the past 3 weeks with 1.1480 acting as resistance and 1.1280 as current support.
As the Eurozone ministers’ meeting approaches we expect higher volatility during this week with traders focusing on breaking the support at 1.1280, which could then see the pair being traded back in 1.10s zone. On the other hand it should be noted that a solid break and daily close above the resistance at 1.1480 could see the pair advancing to 1.1580 and thus it is imperative that protective measures such as stop orders should be placed when price approaches either boundary of the current consolidation zone.