By CountingPips.com
The euro, fresh off three days of decline, has rebounded against the U.S. dollar today in the forex market after touching a monthly low in early trading. Greece’s fragile financial situation, rising bond spreads and speculation that it may default on its debt has weighed on the European common currency and earlier today brought the EUR/USD to its lowest 
level since March 25th before reversing direction.
The EUR/USD started off the day at the 1.3331 exchange rate and proceeded to fall to 1.3282 before rebounding to the current exchange rate of 1.3352 near the end of the U.S. trading session.
The euro got some help today by comments from European Central Bank President Jean-Claude Trichet after the ECB announced it was holding its interest rate steady at 1.00 percent in an expected move. Trichet stated that a sovereign default “is not an issue”, concerning Greece’s debt difficulties and said that the previously agreed upon loan package was a “workable framework”.
The Greek government also announced today that the budget deficit for the first quarter of 2010 shrank by 40 percent on annual basis. The budget deficit fell from EUR 7.1 billion in last year’s first quarter to a EUR 4.3 billion deficit in the first quarter of this year.
EUR/USD 1-Hour Chart – The Euro breaking out of its short-term downtrend versus the U.S. Dollar today in forex trading. The EUR/USD had fallen for three straight days this week, declining below the 200-hour moving average (red) and dropped to an April low point today at 1.3282. The pair has rebounded to the 1.3350 area and right where the 50-hour simple moving average lies (purple).
