Forexpros – The euro resumed its slide against the dollar on Monday, erasing last week’s gains made on bottom fishing as well as on comments from European leaders they hope Greece remains in the currency zone.
In Asian trading on Monday, EUR/USD was trading down 0.12% at 1.2764, up from a session low of 1.2749, and off from a high of 1.2784.
The pair was likely to test support at 1.2643, the low of May 18, and resistance at 1.2869, the high of May 15.
The euro firmed in recent sessions in part on comments from across Europe, including from German Chancellor Angela Merkel, that the continent wants beleaguered Greece to resist abandoning the currency.
Harsh austerity measures tied to bailout payments have angered a wide swath of the country, boosting popularity among candidates in favor of rejecting belt-tightening measures such as spending cuts and tax hikes designed to streamline the economy.
The country will go to the polls on June 17 to elect a new parliament after a May 6 ballot failed to bring all parties together to create a coalition government.
Recent polls suggesting the conservative New Democracy party was regaining ground gave the euro some support, as did comments from U.S. President Barack Obama calling for both growth and austerity in Europe.
However, fears that a Greek exit will pressure Spain and Portugal to ditch austerity and go its own way pressured the euro down in Asian trading on Monday.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP down 0.02% at 0.8078 and EUR/JPY trading up 0.08% at 101.07.
Greek concerns will move the pair Monday although investors will keep an eye head towards Tuesday’s homes sales data.
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