The pair gapped down this morning after the news that Greece will hold a referendum on whether to accept the most recent creditor offer, increasing uncertainty over the country's future in the euro-zone.
EUR/USD dropped like a stone on Monday morning hitting a low of 1.0954 but then almost immediately it began to rise and has now pulled back to virtually close the entire gap at 1.1122.
Nevertheless the short-term trend (since the June 18 highs) has now reversed and is bearish, and expected to extend lower. A break below the monthly pivot at 1.1087 and support and resistance at 1.1047 – including a 20 point margin – so below 1.1027, would provide strong confirmation of a continuation lower.Such a move would initially be expected to reach the 1.0954 lows and then a break below them including a 10 point margin, so below 1.0944 would probably reach down to 1.0850, the potential zone where next month's S1 pivot could be situated.