EUR/USD at Crossroads Waiting on Greek Budget Cut Vote (Charts)

EUR/USD (see larger views below)
EUR/USD (Euro in U.S. Dollars) is trying to confirm a direction in the center of a descending channel. It rallied hard last night when Premier Wen said he would invest in the Euro-zone's sovereign debt. At Bloomberg (6/26/2011):
"Premier Wen Jiabao said China will keep investing in Europe’s sovereign bond market, providing a vote of confidence in the region roiled by the debt crisis."

And French banks are willing to rollover greek debt. At Bloomberg (6/27/2011):
"The euro maintained yesterday’s gain against the dollar on optimism Greece’s creditors will agree to roll over the nation’s debt to forestall the currency union’s first default."

However, the Euro started falling on fears that Greek austerity might not pass. At Bloomberg (6/28/2011)
"The euro fell against the dollar and yen, reversing earlier gains, before Greek lawmakers vote on budget cuts tomorrow needed to prevent the currency union’s first default."

Who knows what will happen tomorrow. Like I said in my previous post, in my opinion EUR/USD needs to stay above 11/4/2010 support (1.4281) to prove it can test the upper-bound of the descending channel. The 50 day moving average and the near-term downtrend line also need to be violated. If EUR/USD can't stay above 1.4281, it could test the major uptrend line and 200 day moving average inside the symmetrical triangle. Click on the charts below for a larger view. I'm going to construct a link-fest with various opinions on the Greek debt crisis and Euro (see it here).

EUR/USD (Courtesy shorter-term

EUR/USD longer-term

Watch the EUR/USD quote live on the FreeStockCharts widget to your right. Or here is the exact layout with trend lines at

Related Posts


HTML Comment Box is loading comments...