Forex Signals – EURO Gets A Helping Hand
EURUSD bounced up yesterday, lets see why and where price is likely to head next.
EURUSD Technical Analysis
We looked at Weekly chart yesterday and noticed price close to Support level. Later price bounced up and finished bullish on daily chart. See below.
Typically candle formation like this one would signal further upside movement to come. However note daily Trendline above which is acting as Resistance from letting price move upwards. Most likely we will see a bear move towards the lower Trendline.
EURUSD Fundamental Analysis
France made headlines when it offered a radical solution for Greek debt. They discussed a plan where Greek debt will be rolled over for 30 years. Germany also showed signs of support for this plan which lifted the confidence among Euro bulls.
As we noted yesterday, Greek parliament will vote tomorrow on bills containing austerity measures, passing of which could see Greece getting the much needed 12b euros. This could lift the Euro up, however most market analyst believe that this is only a temporary measure which will delay an inevitable default or debt restructuring.
EURUSD Forex Signal
Look for shorts until 1.4150, if price manages to break and close above the Trendline at 1.4360 then it will open room for further bullish movement.
I guess the price will break above and head toward 1.45
We will look for a confirmed Breakout above 1.4360
What about GBP/USD, any thought?
GBPUSD broke below a major Trendline on weekly chart. Most likely it will head lower in coming weeks.
(GR) Greek parliament ends debate and set to begin vote on medium-term austerity plan after remarks from PM and Finance minister
- Vote likely to formally begin at 8:00 ET (12:00 GMT) and be conducted under a roll-call (voice vote)
– There will be two votes in the Greek parliament on the five-year medium-term government austerity plan, the so-called Medium
-Term Fiscal Strategy (MTFS).
- First will come a vote on the general framewrok plan on Wednesday, then a vote on the law to implement the measures on Thursday morning ET (Thursday afternoon local time).
- If the parliament votes no (analysts see a 30% probability), the €12B tranche of the EU/IMF would be blocked and Greece would be left grappling for funding in a political vacuum pending a likely general election.
- Yes votes will shift the immediate focus will shift to the Eurogroup meeting on July 3rd. The Eurogroup will look to define a three-year package effectively removing the need for Greece to access bond markets before 2015. While there is no final number as of yet, a package of €85-120B seems likely split between new EU/IMF loans worth €40-70B, Greek privatization receipts of around €25B and private creditor participation of €20-30B.
- A report on late Tuesday said that one member of the ruling PASOK party (Mr. Robopoulos) who previously claimed opposition to austerity measures has now vowed to support the measures. The ruling party has a 155-145 majority in the parliament which appeared to be eroding after reports earlier this week said that four PASOK members might be wavering.
**Note: Greece's Papadimitriou MP (New Democracy party member – opposition) stated that she would back austerity plan as she noted that the medium term plan is the only answer (refer to our 6:41 ET headline)
Source: TradeTheNews.com