EUR/USD Inside Vertex Waiting For Eurozone Catalyst (Trends, Channels To Watch)

EUR/USD (FreeStockCharts.com) - shorter term

I'm watching the EURUSD vertex point. Putting the action into words, The Euro in U.S. Dollars is testing the high from November 2010, as well as uptrend support from January 2011. The green circle shows where it would trade if EURUSD successfully broke above the November high with support from the rising trend. However, it is still in a wide descending channel. If EURUSD breaks below the uptrend line from January, EURUSD would trade inside of a longer term symmetrical triangle using the uptrend line from June 2010 as support.

EURUSD is trading below the 50 day moving average (blue line) and above the 200 day moving average (red line). I wouldn't be surprised if the Dollar rallied further here (EUR/USD moved lower) and market pulled back as a result, but the debt ceiling debate, end of QE2 and U.S. economic slow down will all affect Treasury yields and the U.S Dollar going forward. The sovereign debt crisis in Europe, as well as contagion risks, are affecting the Euro. For more information and catalysts that lie ahead read these articles below. I also embedded a video with Greek Prime Minister George Papandreou addressing parliament (via Al Jazeera).

Europe Fails to Agree on Greek Aid Payout (Bloomberg)
Europe delays decision on emergency loans to Greece (Reuters)
EU’s Juncker Says Progress Made on New Greek Aid Package (Bloomberg) ?
Euro zone finance ministers' statement on Greece (Reuters)
Official Statement By An Insolvent Europe On An Insolvent Greece (Zero Hedge)
Japan says G7 finance leaders discussed Greek crisis (Reuters)
Greek Default Would Spell ‘Havoc’ for Banks (Bloomberg)
Related: Italy’s Bond Ratings May Be Downgraded by Moody’s Amid ‘Growth Challenges’ (Bloomberg)
Pimco head says EU must change course on Greek aid (Reuters)

"Europe risks wasting more money for nothing if it keeps pumping billions into the ailing Greek economy, the head of Pimco, the world's largest bond fund, said in an interview published on Sunday."

If All Else Fails, Lower Your Standards (Irwin Seltzer - Wall Street Journal)

*EUR/USD (FreeStockCharts.com) - longer term*