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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - Market participants managed to unwound the early harm created by the early failure from EU finance ministers to struck a deal on Greece's debt, and the Euro has once again found plenty of bids on the assumption that by next Monday the money for Greece will be unlocked.EURUSD weekly high stands at 1.2868, achieved in Asian hours, following a NY close at 1.2833.

After the recovery in sentiment, Westpac FX strategist Sean Callow, notes: "This is probably the right response, with the Eurogroup indicating that agreement was close and German Chancellor Merkel talking about reducing interest payments Greece is due to pay bailout fund EFSF, which we would view as a much better option than demanding yet more fiscal pain."

BKAssetManagement Founder, Kathy Lien, believes the price action in the EURUSD is telling us "that investors remain hopeful because what's a few more days when we have waited months for a deal" she says.

On Greece, there are several option on the table, with the WSJ citing three, which include a debt buybacks program, loan interest cuts to 0.25%, which may potentially save the country over 44 billion euros, and a return of SMP profits.

As traders await for a decision about the fate of Greece, they will be entertained during today's European session by varies Eurozone November flash PMI readings, released on Thursday, and followed by the German IFO report on Friday. "If there is a material decline in the PMI or IFO reports, fear of a sharper slowdown in German growth could weigh on the euro" Kathy adds.

In the U.S., currency trader will enjoy the Thanksgiving breakout, thus expect volatility and liquidity to be thin in the market.

According to in-house technical expert Valeria Bednarik, regardless the Greek chaos, the pair's trend continues to be bullish at least in the short term, with the price suggesting it wants to continue higher after taking out 1.2840 static Fibonacci resistance level, she says.

Mr. Callow also believes that EUR should be supported ahead of the 26 November meeting, "though we remain inclined to sell rallies on a multi-week outlook" he notes.

Meanwhile, FXWW Founder Sean Lee, has been recently highlighting that it makes all the sense in the world to be overall short and bearish the EUR given the situation in Greece and Spain, but as he notes, "these shorts can easily get squeezed when markets are thin and liquidity worsens." He thinks sellers might get good levels on exhaustive stop-loss spikes."

Technically, Sean notes: "Prices have been oscillating around the 200-day MA and this indicator seems to be losing its technical relevance and a 1.2650/1.2900 containment range looks increasingly likely."
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