Forex: EUR/USD bounces from European selloff

FXstreet.com (Barcelona) - The daily low at 1.2936 found by the end of the European morning triggered a bouncing period for the pair that allowed a 25-pip retracement to the 1.2960 zone, area of which the EURUSD still surrounds. The market was falling strongly since the European early hours, following a rally to 1.3009 high on the Asian session in reaction to the announcement.

After the announcement of a Troika-Greece agreement, German finance minister Schaeuble said he expects further debt writedown from 2016, depending on the primary budget surplus that has to be around 4.5% by then. "When Greece has achieved, or is about to achieve, a primary surplus and fulfilled all of its conditions, we will, if need be, consider further measures for the reduction of the total debt", he said. Schaeuble asked the German lower house to vote in favor of the deal on Friday and said this arrangement is optimal given the legal limitations of the lender institutions.

"Positive sentiment favors the upside, as clearance of 1.3020, 25/31 Oct double-top and Fib 76.4% of 1.3137/1.2660 is required to confirm break and expose 1.3070, possibly 1.3100 on a break", wrote Windsor Brokers analyst Slobodan Drvenica, adding that extended 4h studies warn of possible stall, with immediate support at 1.2942, ahead of 1.2900 and 1.2830 zone, loss of which would revive bears.