The Euro is trading higher this morning as the Eurozone is rumored to have a new bailout fund to save Greece from default. The EUR/USD has so far hit the 1.3690 high, but many traders remain uncertain till the 1.4000 level is once again broken. Intraday bias remains on the downside, as long as the 1.3934 minor resistance line is not broken.
EUR/USD Hit Below the 1.3500 Level, Low Confidence
EUR/USD hit below the 1.3500 level this morning, investors low confidence in the Eurozone being able to contain the Greece debt crisis from spreading to other EU members. The chances of Greece defaulting on its debt is pretty low, however, as the crisis continues; bond yields from Italy and Spain continue widening.
USD/JPY has reached the 77.04 low, hitting the 19 weeks low. As the currency pair is getting closer and closer to the 76.25 low (March 19th, 2011), the BOJ has stepped up the speculations of a “solo intervention” to weaken the Yen. Don’t expect the U.S or the EU to coordinate with the BOJ an “international” intervention, since they are facing their own economic dilemmas.
EUR/USD breaks the 1.4280 minor resistance line and reaches the 1.4436 high. The Euro rallied on a strong note yesterday as the Euro Zone agreed to a 2nd Greek bailout. Intraday bias has changed to the upside, since the currency pair was able to maintain its price action above the 1.4280 minor resistance line.
EUR/USD took out 1.3968 major support line last week and hit the 1.3836 low. Intraday bias remains on the downside, as long as the 1.4280 minor resistance line is not broken. On the downside, if the 1.3836 low is broken it will continue the bearish momentum and target the 1.3750 major support line.
How to Profit from Passage of Greek Austerity Measures
It looks as though Greece will avoid plunging the international financial system into turmoil, as the Greek Parliament is preparing for a second vote on austerity measures that the European Union (EU) demanded in order for Greece to receive the next installment of the 110 billion euro bailout that the European Union and the International Monetary Fund provided to Greece last year.
The Greek debt saga has been ongoing for months now and the uncertainty is building up. We have street protests in Greece against the Government measures of raising taxes and deep spending cuts. The European Union is not bluffing this time, it wants Greece to take serious steps if it’s looking for a new bailout package.
EUR/USD is trading to the downside, after the EU delays its decision on Greece’s bailout. Intraday bias remains on the downside, as long as the 1.4495 minor resistance line is not broken. On the downside, if the 1.4072 low is broken it will continue the bearish momentum and target the 1.3968 major support line.
EUR/USD breaks above the 1.4344 minor resistance line and reaches the 1.4422 high. There are reports of Germany making concessions to allow a new bailout for Greece, which removed some of the downside pressure on the Euro. Intraday bias will change to the upside, if the price action sustains its momentum above the 1.4344 minor resistance line.