- Bailout funds can now recapitalize banks directly.
- EU countries following budget rules can now apply for bailouts without "stringent conditions."
- EU leaders agreed on “the four building blocks” of a tighter European Union (more details in October).
The euro initially spiked to 1.2626 on the news but is now trading at 1.2591. I think EUR/USD needs to break through that 1.2624 ceiling resistance level (multi-month low on 1/13/2012, second chart) to attempt a rally to 1.29 (downtrend resistance) in the near-term.