Investing.com -- EUR/USD moved lower as expected as the Greek Debt Crisis weighed, but displayed resiliency by avoiding a major collapse following a resounding victory by the Syriza party in Sunday's public referendum.
Currency traders now await Tuesday's critical emergency summit in Brussels between Greece and its European creditors for further indications on the likelihood of a Greek bailout. A host of emergency meetings involving high-level officials from the European Central Bank, European Commission and euro zone group of finance ministers has accomplished little headway in recent weeks.
On Monday, EUR/USD traded between 1.0994 and 1.1115, before settling at 1.1056 at the conclusion of the session, down by 0.50%. The euro is now down against its American counterpart by 0.42% over the last month of trading.
The currency pair likely gained support at 1.0955, the low from June 28 and was met with resistance at 1.1348, the high from June 23.
In Athens, officials from the Greek bank association said banks nationwide will remain closed through at least Wednesday as the nation awaits a decision on whether it will receive further liquidity assistance from the European Central Bank. Deposits from ATMs throughout Greece will remain capped at €60 per day, officials added.
It came less than 24 hours after Greek citizens turned down a closely watched referendum, which could have lent support to a cash-for-reforms deal proposed by leaders from the euro zone and may have led to the resignation of prime minister Alexis Tsipras. In a sweeping vote over the weekend, the Greek people rejected the referendum by a 61.3% to 38.7% margin.
Also, the Greek government announced that Euclid Tsakalotos will be sworn in as the nation's next finance minister on Monday evening following the resignation of Yanis Varoufakis earlier in the day. Tsakalotos, an Oxford-educated economist, will represent Greece in a meeting of euro zone finance ministers on Tuesday in Brussels.
Meanwhile, Germany vice chancellor Sigmar Gabriel indicated that Greece is teetering on insolvency and must present an offer beyond the measures it has proposed in recent weeks if it hopes to reach a deal. Greece's latest proposal could be modeled on the latest offer crafted by European Commission president Jean-Claude Juncker, according to multiple reports.
Elsewhere, the International Monetary Fund sent indications that it may lend financial support and debt relief to Greece if Tsipras' government is willing to enact the austerity measures needed to appease its creditors. Last week, Greece became the first advanced nation in more than 70 years to default on a loan repayment to the IMF.
"The IMF has taken note of yesterday's referendum held in Greece," IMF head Christine Lagarde said in a statement. "We are monitoring the situation closely and stand ready to assist Greece if requested to do so."
Stocks fell mildly throughout the euro zone in response to the news. In Italy, stocks on the FTSE MIB plunged more than 900 points or 4.03% to 21,600.72. Investors are keeping a close eye on Italian equities and sovereign debt, amid fears of contagion throughout the zone if Greece leaves the euro. In France, the CAC 40 tumbled by more than 2%, while in Spain the IBEX 35 closed down by more than 2.2%.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell 0.38% to 96.44.