Monday, June 20, 2011

EUR/USD 1,4370

EUR/USD recovered from the 1.4190 area, where the pair bottomed out during the European session and rose over 140 pips propelled by an improvement in market sentiment amid European assurances that a solution for Greece will be reached.

“Euro is seeing some strength today against the United States Dollar as market is beginning to believe in a resolution of Greek debacle. The situation is simple to resolve it seems, Greece will get additional funds of €12 Billion by mid-June only if they agree to stricter austerity measures. By showing complacency regarding austerity measures, Greece might further advance its own cause of further bailouts. In turn Greece will refrain from defaulting. Bearing the following premise in mind, market participants are becoming optimistic and bidding up the Euro,” said Andrei Tratseuski, from Forex Club.

However, EUR/USD found resistance at the 1.4325 area and has spent the last hours consolidating into a tight range just below that level. At time of writing, the pair is quoting at the 1.4310 zone, 0.23% above its opening price. On the upside, if the Euro manages to extend gains beyond highs, next resistance might be found at 1.4335, while immediate supports could be faced at 1.4190 and 1.4150/60.

source: fxstreet.com


5 comments:

  1. Not really into economics but is a lower ratio better for the economy?

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  2. I think all the eyes the world are on Greece right now for many reasons. It seems that the birthplace of democracy is having some serious growing pains of its own. Hopefully they won't take the entire European economy with them.

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  3. Them Greek bailouts are going to throw this into fluctuations.

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  4. I hope we can sort Greece out.

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