EUR/USD Decline Extends To 1.3950 Amid Fears About Greece

Euro recovery from 1.3935 has been capped at 1.4050, as following pullback has extended 100 pips lower on early US session, with the Euro reaching 1.3950, weighed by concerns about Greece's sovereign credit.

At the moment, the pair trades a handful of pips above session low at 1.3935, and, in case of further decline the pair will enter on fresh 6-month lows with next support levels at 1.3910 (Jul 14 low) and 1.3870. Resistance levels lie at 1.4025/30, and above here, 1.4050/60 (session high) and 1.4095/10 (Jan 27 high/intra-day level).

Eurozone authorities have denied rumours about a bailout to Greece, which has weighed on the Euro, while the cost of insuring Greek bonds against default increased to record highs.