Now we've got that unfortunate saga out of the way EURUSD can continue on its journey to parity, can't it?

Remember all those calls that the euro would hit parity over US interest rates and problems in Europe? They're back on as the goldfish attention spanned market forgets about Greece and concentrates on running up the dollar

It's been a classic case of jumping the gun today. EURUSD is down while USDJPY and GBPUSD rise as interest rate divergence takes hold before the ink is even on the Greek deal, let alone dry

Is the next stop 1.00 for the EURUSD?

Let's remember where we were before Greece, well the last few weeks anyway. We had a dovish Yellen, and a not so hawkish FOMC overall. The jobs market is doing ok but the wage picture is still weak. Durable goods and industrial production have worsened, manufacturing has been mixed, exports are still slumping, retail sales were better and housing markets are doing ok

All in all there's not been much to say that we now have a green light for September now that Greece is supposedly out of the way

Today the market is having a relief rally. Most risk trades are higher. I would almost ignore today's moves in favour of seeing how they develop over the next few sessions, when the market thinks carefully about where we are really at right now. Greece has provided a lot of noise and now that is dying down, so the market will settle down

EURUSD might well start trading the US rate picture again. Even before the latest Greek stuff it wasn't looking like it wanted to head much lower though

EURUSD daily chart

To even entertain the possibility of the euro really testing the downside we have to clear this current strong support area around 1.09-1.08. We're developing a new range between 1.0965/70 and 1.1290, and further out 1.0885 - 1.1380. 1.0820 - 1.1450 mark the extreme edges that we'll need to see broken to bring a move outside of those levels

The parity calls have always been a long shot in my book and right now there's not much to suggest that it will happen. If it is then it's going to take a huge improvement in the US economy and an equally large collapse in Europe to see that happen. You never rule anything out in this game though and the price action is king. We have the ballpark and it's up to the market to decide where it wants to go