February 6th, 11:23 am by Barbara Zigah
(eToro Blog) With only hours left for the Greek government to accept the latest conditions to secure the second €130 billion bailout loan, the Euro is under heavy pressure. Last week’s rally is nothing but a distant memory, and the Euro-Dollar is currently at $1.3058, nearly 80 pips lower than Friday’s close.
Sentiment on the OpenBook was earlier predominantly bearish, but bullish sentiment is already picking up steam as investors buy at the pair’s dip in anticipation of a positive outcome. OpenBook guru pyruss, who closely follows the pair and the news which affects it, opened up a new long position earlier in the trading day when the pair dipped to 1.3060 and it is already returning a small gain even as the target for that trade is 1.3557. Guru Gavinwright, who is closing in on 400 copiers, also thought to buy at the dip but didn’t get in as early as pyruss and still waits for his longs to turn.
OpenBook guru Moksel972 has been profitably closing out short positions in the EUR/USD over the weekend and earlier today, giving his 1869 copiers reason to cheer. Trader leogem, who happens to be one of Moksel1972’s copiers, profitably closed his own short to a 17.5% return and yet another copier, stuartmurrell, closed a short with a 37% return
While most observers believe that the Greek government will agree to the terms in order to avoid a default, it is clear that the government has been placed between a rock and a hard place. The latest conditions call for, among other things, even more austerity measures, and that is where the Greek coalition government lacks consensus. Greece is already in a 4-year long deep recession, and unemployment is approaching 20%. Many Greek politicians believe that the measures will push the Greek economy further into recession, a point from which they may not be able to recover.
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