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A lot has been talked about Euro lately and it is a good time to analyze EURUSD both technically and fundamentally.

Lets start with Technical analysis first and then later we will look at potential Forex signals.

Last two weeks has been a roller coaster ride for Euro, as a result Weekly candles formed Dojis. Price is now resting just above Support level at 1.4080

A break below this 1.4080 could send EURUSD all the way to 1.3700 where weekly Trendline comes into play. On the other hand if price bounce up then it could reach 1.4500 where we have upper weekly Trendline.

All eyes are now set on Greek Parliament which will vote on austerity measures on Wednesday. It is critical for Greece to pass the proposed bills which contains harsh spending budget cuts and tax hikes, failure to do so could stop Greece from receiving the much needed bailout installment.

There is also a talk about a second $170 Billion bailout package which will end in 2014.

Market is likely to remain jittery until the vote and its better to remain on sidelines unless we see a strong momentum in either direction.

Aggressive traders can wait for daily chart close below 1.4080 then look for short trades until 1.3700.

GBPUSD has reached an interesting juncture on the weekly chart and it is good time to review for any potential trade. Lets start with technical analysis first.

GBPUSD has been in a long term uptrend, correction started two weeks ago when price failed to break above 1.6750. Since then GBPUSD has dropped 600 pips and came down to rest on Weekly Trendline.

If GBPUSD manages to move below and close below 1.6100 on daily/weekly chart then further down ward movement is likely to continue. A bounce from this Trendline to the upside can send the pair back to 1.6750.

Members of the Monetary Policy Committee (MPC) yesterday decided against increasing the interest rates. For few months now market has been speculating on MPC to increase rates, but rise in inflation and slow economic growth are hindering the way to any increase in interest rates. A rate rise will further decline growth and could accelerate inflation beyond 4.5%

Keep an eye on the retail sales numbers later today and speeches from couple of MPC members.

We will remain bullish and look for Longs until 1.6750. If GBPUSD manages to close below 1.6100 then we will turn bearish and look for Shorts.