A few quick notes for the European open. It has been an ugly start to the day with the French CAC 40 opening down by 1.8% with financials being the hardest hit. Yesterday’s risk off day has carried into this morning’s trade as the announcement of a Greek referendum weighs on the EUR.
The referendum is a risky gamble for Greek Prime Minister George Papandreou and the risk for a failure is high which could prompt early elections in the only remaining bailed out government that is still in power since taking financial aid. The EUR/USD has broken below the big round number of 1.3700 and the pair has support at 1.3650 from the October 18th and 20th lows followed by a 61% retracement of the October move at 1.3565.
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